Final Count Down 3-4-5?

Markets are trading at critical pivotal prices which could be ST tops and which could be followed by sharp declines to finish off the final decline into mid year. Because of the recent excessive bullish sentiment, it is difficult to pounce the ST top; however, the 3/6/2009 could become one of the well-known false bottom. VIX and CPC formation is getting ready to explode which I think that it is to upside as markets trade down. Markets will soon confirm or negate the scenario since markets are trading near at pivotal S/R. After reviewing all major market charts and formations and considering other factors, we could see unexpected market actions as we have seen during the last couple of weeks. But for this time, we could see market actions to the opposite side.



VIX and VXN breakout to upside?


Pivotal Resistances:
SPX 830 +/-
DOW 7780 +/-
Nasdaq 1555 +/-
Q 31 +/-

The cyclical bull market will come when markets trade to the final target to SPX 555 +/-, DOW 5555 +/-, and Nasdaq 1000 +/- for the bear market which started in October 2007.




$BKX

$BKX 17.75 reversed at the same time as SPX 666.79 on 3/6/2009 and rallied to 31.05 on 3/23/2009 -- 70% rally from the low which is below the 1995 support at 30. $BKX is also trading near at the pivotal resistance 31 +/-. The bearish case for the major markets is to resume the final down move while $BKX is testing near the low 20, a higher low.

During $BKX is testing the low, the targets for major markets are SPX 555 +/-, DOW 5555 +/-, and Nasdaq 1000 +/-.
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The cessation of the recent rally as the ST Top to resume the final down move:

Posted by: *~1Best~* Date: Tuesday, March 24, 2009 10:37:06 AM

Markets are trading at pivotal S/R which could be a start of a strong move to downside which is technically sound after the recent reactive bear market rally of 20% +/- from SPX 666.79 on 3/6/2009 to SPX 823.37 on 3/23/2009. The bearish case is a long squeeze which is the opposite reaction to the recent vicious rally. A bearish case is, rather than resuming the strong bounce since 3/6/2009, resuming the down move during the Q1 earning report as a final down move.

Resistances:
SPX 830 +/-
DOW 7780 +/-
Nasdaq 1555 +/-
Q 31 +/-

The volatility setup could be a contrarian setup which is signaling a strong down-move, but again markets are trading at all important pivotal junctures.


$VIX and $CPC as of 3/23/2009:

$VIX closed at 42.01 while $CPC is at 0.70 which is the 2 year low (CPCI is lower than CPCE which P/C ratio is saying many are buying Index ETFs)



Thou shall not "lie-to-me" :

Investors can't handle the truth
We've adopted a culture of whining and embraced the 'Lie to Me' mindset
By Paul B. Farrell, MarketWatch
Last update: 6:35 p.m. EDT March 23, 2009

Meanwhile, it keeps getting worse. And our leaders know it, know America is trapped in this insidious "lie-to-me" mindset. They know that if they just "lie to me," we'll let them do whatever they want. http://tinyurl.com/c3lhc5