$COMPX 2055.52 -1.80 -0.09% 2,199,386
$INDU 9802.14 30.23 0.31% 1,352,197
$INX 1046.50 1.09 0.10%
HOD SPX 1061 backtest of a break of trend support.
Weekly price actions are turning negative suggesting profit taking after 8 months rally based on debt spending. We have not seen any market correction even after 50%+ market advance since the March low. Last week is a CIT pivot. Even though some of major market price and breadth indicators are misleading to show oversold, we didn't have a price correction.
After the market advance based on debt spending, carry trade, momentum trade, etc, we may finally see a meaningful correction.
The followings are two different scenario wave formations. As shown on the SPX 60min chart, we may see a completing wave (v). As shown on the SPY 15min chart, we may see a start of wave {III} correction. I noted that tentative wave 1 target is SPX 950 - 1000 +/-.
For a less bearish Long Term scenario is that we are in Wave C correction.
What the markets are hoping for Americans to spend until going bankrupt; however, many are already "shopped until drop dead". In addition, the current globalists' agenda is not helping the United States as we are continuing to see "Trade Deficit" in addition to cost-cutting as we just heard "Microsoft" is cutting additional 800 jobs. We are in a long term down K cycle which Greenspan in late 1990s has massaged the cycle to avoid the downturn creating bubbles; therefore, Americans are worse off now than we had gone through the long term down cycle at that time. Of course, that means that the greedy globalists made fortune as we are hearing about the huge Goldman bonuses.
We now have internet and cyber communities through which some are learning realities of politics, economics, and financial conditions. Therefore, bears were right -- but were slaughtered... e.g. Bernanke greedshoot since March. Maybe we finally see a correction or a serious pull back so that many will realize and sober up. For example, we are seeing some of excellent Japanese products because out of pain, they rose above mediocre performances, e.g. GM losing to Toyota. I don't like Microsoft Mouse, another example, compared to Sony Mouse because the performances are clearly distinguishable. Sony mouse can do precision drawing while Microsoft mouth is bulky and terrible with precision drawing. Many Asians and females have small hands, and big mouth is really pain in hand after using for hours. Americans and students need to go through new learning process.
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