Monday October 8, 2012

 

Just a short term update. Last Friday’s early morning thrust took the SPX into the 78.8% Fibonacci area. This implies the old highs of SPX 1474.51 will be matched or taken out. The secondary considerations are a bigger bear leg has started or the market is carving out a larger triangle. I’m going with the higher highs. I have also stated a normal retracement back to the breakout is normal and as mid day, this is looking likely to hit today or tomorrow. Buy zone is around the 1445-1450 area. The 20 day moving average is also there so that’s just a bonus.

 

Another bonus of the leg higher is if Apple can turn around. It has hit the minimum of the DeMark daily nine count and it is free to go up anytime. It is also hit the top of the buy zone so the buying is getting ripe. A turnaround here would inspire me to be buying more equities despite the SPX not within the buy zone. Otherwise, I will be patient till the end of the day or tomorrow.

 

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