Sep 2, 2010: The prices should be at a pause zone as the FLD configuration according to the dominant cycles I follow are not ideal for further advance into next week. We also see the intermediate term cycle low lining up in about 6-8 sessions. However, this period may only work out as a double bottom over the 1055 gap support or perhaps a slight dip lower. I think 1155-1165 gap support will hold for September around late next week. Breaking below that level would target low 1122-1125 or roughly a double bottom. It is possible, but less likely and in fact, it is unlikely to decline a lot lower for September anymore.
My thinking here is the pull back into next week will complete a consolidation around the gap and the market will take off. Currently there is already a price target of 1120 triggered. If the market does not break below the 1055 gap support into the cycle low due in 6-8 sessions, and rallies back up to 1085 subsequently, or current prices, the upside targets will be reconfirmed and actually become 1130 into October and it is likely that higher price targets will be triggered from there.
The highest targets possible are 1155-1185 gap zones for November. However, it will be fairly critical how the market achieves the lower 1120-1130 target into October, if it does...
That's it from me for now, if 1055 is not violated until late next week or early following week *major cycle low*, I will try to come back to follow up on my analysis later in September or early October once the upside targets are confirmed again (by rallying back up to 1085). If we drop lower, then we may have to wait for another low into the month end and see how the market behaves there...
Best of luck.
