Those of you who followed me on YorbaTV on Thursday have a leg-up on what’s happening. On Friday, we broke the daily Ending Diagonal pattern with an immediate target of 1343.35 (November 16 low). In fact, my Cycles Model also agrees by suggesting an initial low near Cycle Bottom support at 1333.74. Things could start speeding up from here.

The question is, how fast will this happen? I would watch this very carefully, since this week may see the whole enchilada. In other words, we may see a drop to Cycle Bottom by Thursday or Friday! That would be a 13% drop, which is not impossible at all.

But if this transpires, the Trading Cycle will not be finished. I can assure you that the powers-that-be will use all their powers to elevate the market over the weekend, so that by Tuesday, April 16 (the next Pivot day), we may see the SPX back at 1451.00 or higher! Remember, THE>TRADING>CYCLE>WILL>NOT>BE>FINISHED until April 26 at the earliest. If this transpires as I have related to you, the SPX will have crossed (and re-crossed) its weekly Ending Diagonal trendline, suggesting a complete retracement to 1074.77 or 1010.91 by the time the Trading Cycle is over. All of this could happen by the end of April (or early May) because of the Orthodox Broadening Tops that forecast an almost identical outcome in a Panic Decline of major proportions.

I may end up missing some analysis, but this is very straightforward. The only question is, “how fast?” Watch what happens this week, since the speed and power of this decline will be dependent on it.

Regards,

Tony

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