The megaphone pattern forming is on the 'c' of "z" side of the equation of a larger B of "Y", suggesting a short sharp shake-out in the offing probably with the oil and housing reports tomorrow. The next top may be as high as 1456/58 by early next week marking wave C of "Y" of the larger B WAVE, the .618 retracement of the A WAVE down into the Jan lows.
On the OEX there is support tomorrow between 632/33 -3.2% and the QQQQ could easily snapback to its broken down trend line to 47.35 or -3.2%. The SPX has support near 1372/75 or -3.0% The Dow could be down nearly 3% on this drop or about 390/400 points.
Cyclewise we have the Gann 16 day cycle bottom due tomorrow and a Gann 16 day cycle top due Monday with a shot at a Tuesday top. Also there is a 7 week cycle low due in this general time frame, last time running 37 trading days with tomorrow being 36 days
The count off the Friday top is a-b with 'b' being a bearish irregular flat.
SPX Megaphone Pattern Forming
Started by
blustar
, May 06 2008 08:19 PM
1 reply to this topic
