Stock Market Uptrends Broken
Stock-Markets / Stock Markets 2012 Jan 09, 2012 - 11:37 AM GMTThe NDX has broken down out of its rising wedge pattern after making a slight new high this morning. The cycles tell us that we have two solid weeks of decline ahead. At the very minimum, we should see a break of the November 25 low at 2150.88. Chances are good that the decline may go even deeper.
The SPX has also broken its rising wedge and is also due for a decline at least below the November 25 low 1158.67. This is the beginning of wave (c) of wave 3. One of the things that the cycles model is telling us is that this decline may go right through options expiration week, which ends on January 20. The ideal date for the next cycle low is January 24. Considering that my cycles model called for an ideal high on January 3 in the SPX, I won’t argue with what my model is calling for.
We’ll find confirmation of the reversal below the Cycle support/resistance line at 1271, Mid-cycle support is at 1267.86 and the 200-day moving average is at 1258.37.
Good luck and good trading!
Regards,
Tony
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