Way of the SPX

The Time for the Bear Market Rally is running Short. There is still some upside left but the Top is getting very close and the reversal may be very swift . For those with the appetite, it will soon it will be time to Short the Market .

The SPX 500 Daily Chart shows both a Great Triangle [ GT ] and an Ascending Channel [ AC ]. In my opinion the GT was a "red herring" disguising a pattern that I liken to a "fishhook". In both log and arithmetic scales the upper boundary of the GT has been broken to the upside. The red AC, to me, is the pattern of choice. There are two internal trend lines [ TRL ] of the AC shown on the chart. The uppermost has acted as support 4 or 5 times since the BMR began. The chart also shows seven blue horizontal lines. These represent potential targets for the TOP of the BMR. From uppermost to lowermost they values are :

Potential TOP Target Levels

• T7-1284.52
• T6-1254.52
• T5-1229.34
• F0.618-1228.50
• T4-1191.22
• T3-1174.26
• T2-1160.72
• EC-1158.76
• T1-1147.41
• F0.50-1121.44

DEFINITIONS

T1 to T8

Determined Averaged Potential Target Values

F0.618-Fo.382

Fibonacci Retracement Levels for 1576.09 - 666.79

EC

Target level if A = C

As you can see from the list the Index price has surpassed the F0.50 retracement level of 1121.44 by 23.95 . In theory this has set the next major Fibonacci retracement Level as a potential target . That is the level 1228.50 . However from a realistic viewpoint the Index may not get past 1158 - 1160 unless the PPT and the GS computers have a surprise in store for the Market. Based on the Futures, at this time, the first resistance at 1147 should be surpassed on the Open .

REMEMBER : Caution is the order of the day as any reversal may be swift and the drop very rapid .

Based on Time Projections there are several days this week that may mark an Event and one of them may be a major event such as the culmination of the BMR. Based on several studies the 13th may be a Tsunami of an Event.

For followers of the Index the following Table lists the Daily and Weekly Resistance and Support Levels .

RESISTANCE

• WR4- 1222.13
• WR3- 1193.30
• DR4- 1169.71
• WR2- 1164.47
• DR3- 1160.54
• WR1- 1154.73
• DR2- 1151.37
• DR1- 1148.17

SUPPORT

• DS1- 1139.00
• DS2- 1133.03
• WS1- 1125.90
• DS3- 1123.86
• DS4- 1114.69
• WS2-1106.81
• WS3- 1077.98
• WS4-1049.15

DEFINITIONS

DR-WR-MR

Daily Resistance- Weekly Resistance- Monthly Resistance Levels

DS-WS-MS

Daily Support- Weekly Support- Monthly Support Levels