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[blustar]

The market surprised traders by falling sharply on the first trading day of the year. The current cycle/wave forecast suggests "one more rally" left for the market before we slip into an intermediate term correction. I would not be surprised to see the S&P 500 cash index rally up into the 1857/58 zone by Tuesday this week, some 26 points higher than the Friday close. We are positioned for this expected rally. The next cycle low is due ideally on January 14, where we could see a 4-5% decline off next week's expected top. The Nasdaq could make its top on Wednesday. Momentum and volume indicators continue to deteriorate markedly on each advance, but the weight of evidence continues to weigh in favor of the bulls. Like I said, this coming rally next week looks terminal on an intermediate term basis, and that being defined as a 10%+ correction over the next 2 months (March 11th?) before we see the final terminal rally to new highs into the 2nd quarter (early April), setting the stage for a huge bear market in the 45-50% range coming later this year.

[blustar]

It looks like more Holiday type stuff here, Bermuda Triangle. Still thinking higher prices ahead as pattern is bullish. 8 TD top due Monday next week from last week.