We have quite some distance to travel (1291.50 and 1296.25)
In order to cancel out the active up extensions (1321.00 and 1330.25)
It appears we reach the up extensions (1321.00 and 1330.25) before reaching the upper walls (1291.50 and 1296.25)
Do I see the market differently now???
First and foremost I have a time frame on this large decline to occur
I need to review the charts to be exact
But it’s roughly another 190 hours; meaning if it doesn’t occur within 333 hours from the 1/30/11 low at 1262.25; then it never occurs
Reaching 1321.50 simply cancels the sell signal on the shorter term time frames
Or if the crude reverses back up clearly above 89.90
The decline I’m anticipating is quite serious
(1219.80 SPX – minimum)
The market is quite one sided
Meaning; bears have no serious conviction to sell this market
I don’t like broken records (manipulation – POMO etc…)
But take into consideration the fact the bears have basically just given up
(a psychological capitulation). This is in the long run is quite bearish, because the short covering rallies will be less or none existent.
Crude cannot continue down and the Equities up for an extended period of time;
Normally in this case the crude reverses back up.
I need to review the SPX and DJ-30 regarding the time frames for this potential decline, because they are quite a bit less…