Well after reviewing many charts and indicators, it appears that the bottom is in. However, a "V" bottom is very rare and often is followed soon by another quick "V" or double "V" bottom, even at higher or lower lows. We are on the verge of a very large move and IMO to the upside. I also think we get at least one more scary down move. NONE of these opinions are just mine alone, I got lots of company.
Below are two charts that will signal quickly where we are . The VXO still has not broken the RED HZ. line to the upside but appears to be ready soon. Carl at DP says we broke out of the triangle and I agree. I also see two potential movements both in a larger triangle failure/breakout and in a channel retrace to lower TL and so forth. Great times ahead, be ready.





Comments always welcome.
mss

hi mss,

We are on the same page. If it weren't for the FED dramatics, I would be a lot longer in core positions. Remember this?





I read Carl Swenlin's comment this weekend as well. So as I mention in a recent post, the challenge will be where and when to pick long entries from here. I still see consolidation from here into October, but a test of the highs could be dramatic (ie. Major Bull Market Breakout time). It is the same dilemma in the PM sector.

cheers,

john

I like it that we see the same thing. w/ window dressing,the tell could come in on thursday.
if you look at my chart on the rut the testing could be done.pull backs to work higher O K.
but,I do not see a big move up at this time. .thx

Don't laugh folks, but I'm starting to see 1543-52 very soon. Two steps, 1539, a breath, then1543ish to 1549ish.
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mss

All very well but do you see 1560 before OCT expiration?

regards.

1552.39

As a seller of calls and puts - I'll hold you to that number

Regards,

Doug,
Is 1549.02 close enough, or are you good for tomorrow? 0.002% error, i'll do better next time.

hi mss,

I'm not sure what this market wants to do with the unemployment number Friday, but I would have to guess there will be limited upside after that occasion. Do we get bear capitulation tomorrow?

So the SPX is +4% from FED day. Now just give me a decent opportunity to add some longs this month.



I guess market sentiment has changed some from August (ie. YES!! the bottom is in)

cheers,

john

Slight new high, then...selling, perhaps back to 1515.

Just guessing.

I continue to watch this market in some disbelief. Yesterday we had a solid outside reversal on the major indices and some bad inflation data this morning. There's hardly a reaction today. There is a solid bid under this market and it is powering the $SPX to breakout in a major way. I don't know what kind of correction will come in the next few days, I bet but it won't last long as it slides into a 10 week low. One could even speculate that the SPX will stay in that uptrend channel into December. I will be adding to core longs on this correction.



I think the behaviour of various markets confirms the very inflationary prospects ahead.

cheers,

john

Hi john,
Adding a new chart to follow for awhile. Weekly with "mo-mo" ratios that I think are very usefull, at least to me.
Takes awhile to get the feel of early warnings, but think you will get it the first time. First chart will update daily thinking each day is a weekending. (rolling 5day wk.) The last chart is to give a long term view of the ratios. It will not update.





Comments welcome.
590
mss

Suggest the two charts at the top of the thread be reviewed closely and the weekly just above. Getting just a little concerned about ST market action and starting to question the IT also.
Any and all thoughts welcome.
mss

I'm watching that dashed down trend line on your chart.
And 1540 looks important.

which chart and what color dashed trend line???????

But 1540 IS VERY important, and so is 1478

Please get your chap stick handy.

Here is a new chart to watch which includes ratios and the new, IMO, TA pattern.
The great arrow will tell us a lot when it breaks .......... UP or DOWN.



I have updated the chart below thru 10/31/07 to see what it looks like. Am still troubled by the decline of the BOP trend line with the massive rise in the SPX. From an "eyeball" view they are too far out of sync to be a normal thing. Then we have this great "arrow" pointing up at a 45* angle, something has to give. JMHO



Comments welcome,
mss
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