SPX technical update for this week – expected snap back rally rolling

The brief rally I was referring to last week happens as expected target 1000 SPX. It’s a quite reliable scenario with such a steep drop below weekly and monthly Bollinger, especially within a capitulation, to have a sharp and brief rally back to the Bollinger point. As you can see, we are anyway in strong support territory at Friday’s lows. Another thing at big support points is a retest at some point and I still stick to early November as the point at time of a substantial low – or end of this leg to put it into the right context. The VIX SEQ 13 worked as well temporarily but we might have to finish the COMBO 13 – last count was 10. I still count the current upmove as wave 4 up and we need final wave 5 down. We’ve got to follow it closely to see how it turns out. As a matter of fact, this is an interesting week, as the mercury retrogade motion ends on the 15th and the 14th is a full moon in Aries, which is in a square to Jupiter, so we can expect wild market swings. The basic momentum will remain to the upside though for this week.

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~ by behindthematrix on October 13, 2008.

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