Hi RRMAN, Thx for remembering. Now, For the next HUGE CALL|
first, let me clear up that backfill issue you noted i predicted. i did predict one, but was a couple days early (we got into an extended wave 3 formation that had one more wave up to go). So the correction did in fact come, as the SPX cash fell from the 1050's to 1030 even, a number that will be very significant in the coming weeks.
Now, for the Huge call that i would strongly advise every trader and investor to take note of (and if you don't believe it, click my name, check my prior posts, and judge my record for yourself). The huge 3rd wave rally recently ended, and took the SPX from 912 on Jan.12th to 1103 on Mar.23rd. Since then, we have begun a large degree ABC correction, which is why vix began to climb on Mar. 23rd, and extreme volatility reentered the market. The A wave is behind us, ending on April 1st, and since then, we have been carried sharply higher in a very strong B wave rally that is scheduled to end Monday, 4/6 around 2pm (and then, of course, C down begins). Looking at the big picture on a 30 minute chart over the past couple weeks, a perfect and tremendous diamond reversal pattern has been etched out, with the upside break already occurring that projects the June S&P futures up to the 1141 area, and with this type of pattern, give or take 5 points (i.e. 1137 being touched on Friday has already technically fulfilled the target of the pattern). I expect on monday that the S&P futures will meet or exceed the 1141 target, and in late afternoon action sharply reverse into a close that will be viewed quite negatively.
Key items to note: The fulfillment of a diamond reversal pattern target results in the sharpest reversal of prices known to man. Plus, the C wave of corrective patterns resulted in every major collapse we have ever seen ('87, '90, 7/96, 4/97, 10/97) and when they occur after a super extended rally and a blow off top created by a super strong wave B ('87), the magnitude of the C wave is quite shocking. Beginning at 2pm on monday, we will have a 7.5 trading day window for market prices to plunge in this c wave correction. So with one day off for Easter, prices should move significantly lower into the Weds. afternoon, Thurs. morning before option expiration. Initial targets point to the 1030 area on the SPX cash, or 8150 on the dow. (a nearly 10% correction in 7.5 days), but I will get a better guage once the final high is in on Monday, and will refine the end target as the large 5 wave C down proceeds. Worst case scenario could take us back to 985 on the SPX cash (12.8%), and best case scenario would take it down to 1060 (6%).
All the other key technical indicators i follow confirm this read (5 day trin recently under 4.0, Vix significantly double bottomed in low 18's with a target in the low 30's, which hasn't yet been fulfilled, and the Bradley indicator calls for a significant reversal on April 7th, + or - 2 days.)
After the correction, we'll have a nice couple week rally that will bring the dow back to the high 8000's, but I don't believe it will significantly cross 9000 until later in the spring, early summer.
Good Trading and Best Wishes to all!