Free Trading Videos.com Topic Reply Notification : $SPX

 

Here is what I think of the most recent action with respect to $SPX.

 

If price exceeds today's late day rally high and closes above a line forming peak resistance (8 May and 20 May absolute highs are the tangent points), then I would say that the popgun is the more likely outcome and that the rally to the option 2 scenario (sudden death) is 'game on'.

 

However, Monday is the first of the month and it would not surprise me that a spike above the high today may occur. It is now a matter of either staying below the 8 May peak or a solid close above todays high that would likely negate the option 1 (later in the fall peak) scenario.

 

Try to recall how bullish the market behaved into the October 2007 peak. A wave 2 mentality is all about hope and that has been the administration's by line all along - 'hope'. Wave 2 should have a similar theme of optimism or so I have read.

 

Monday GM will likely announce bankruptcy and Wednesday is the Fibonacci time of 1.382% of the wave 2 rally from start to peak.

 

So an ~ 15% pullback (800 or thereabouts) would be nice to get into a long but it may not happen.

 

I heard a good joke today. (recall only that the benighted just don't have a clue as they are 'in the dark' and now recall who says who is the benighted and flip the label - that is an old progressive trick)

 

"My mother always told me to say nothing if I could not say something nice about someone."

 

"I said nothing."

 

Get it?