SPX mid-term tech outlook – bottom game on

The weekly SPX chart shows what had to happen, we are finally heading for the Oct 2002 lows to make a decisive low – but not ‘the low‘. The count is now at a weekly 10 and, as you can see, the 2002 low was also marked by a weekly 13 and that was done back then with an intermediate rally – not in one go. As we make a lot of daily 13’s these days, we might see a minor rally as well before the final low of this leg is in. The good thing is that we made new lows today compared to the recent October lows, which is how a bullish divergence gets built. As we get likely a weekly 13 for the BKX next week, we are due for a minor rally next week with options expiration. Let’s see and follow closely what the market tells us with some buyers coming in the last hour. The context will be an overall low as oil is also close to make a severe low soon, as are commodities in general. As all these factors complete their patterns, we are ready for a substantial relief rally.

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~ by behindthematrix on November 13, 2008.

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