SPX update

The technical picture is a horror show for bulls but a blessing for shorts as we are to get the ‘ultimate short’ signal – just kiding as the death cross is just 1-2 days away. Well the irony is that mostly short after the crosses come usually a counter-move starts. On the other hand its overdue once wave 5 of 3 is done sometime next week most likely. An ABC upside correction within the bigger wave 4 is due thereafter before bigger wave 5 will bring the SPX to the 1000-50 level. Whoever is following my blog for a longer period shall remember that we are almost perfectly repeating the 1907 – 10 move almost exactly 100 years later as Gann one of the best traders ever pointed out. That would give us a 25% correction target and match the 1000 level. looking at the global situation which gets worse by the day and is reaching epic levels I think something much more ugly is due and the astro patterns for Q4 are rather more destructive than the situation now. The current Grand Cross triggered by Mars has its climax actually today which refers mostly to volatility matters. The wild 5-10% swings should go into smoother water next week. For now between 1180 and 1210 the upside has the cap and around 1100 we should get the wave 5 low – extreme case 1050 but its hard to figure out as the panic mode is still active. Amazingly we are not in a real bearish picture after all except for the Rydex indicator. Analysts at Wallsteet overwhelmingly cling to their pathetic bullish calls of 1400 which confirms my view that ugly things will happen. So far no Soros or IMF have called for the end of the world which usually is at or close to bottoms. Instead the usual suspects Buffett, Blackrock and others claim its a good market. SPX just needs 1 new lower close to complete a 13 daily count as we are in a week 3 count which is not a low marker usually but we are anyway still in wave 3 and the real low is rather due mid to end Sep as Saturn exactly square to the USA Sun is about to roll away slowly but will enter in a few weeks an even gloomier pattern.

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~ by behindthematrix on August 11, 2011.

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