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[Mr Dev]

i did promise some charts yesterday and those will becoming here shortly but i wanted to update my short term to intermediate term overall technical picture. yesterday we moved thru the 60m momentum section on the charts.. and the daily momentum area of the charts will likley be reached monday..maybe tues. looking at the weekly momentum area at this time is difficult without a perfect understanding of where/when the daily momentum will extend but i suspect we we could see the weekly momentum for this pull back start at the end of next week Aug 31st area and again extend thru Sept 5th -7th. as i see it each time frame moves thru the momentum area at its own rate meaning a 60m move doesnt last as long as a daily which doesnt last as long as a weekly. note that i do expect the following week of the 14th to see a slowing or stalling of this negative momentum if not a short term reversal . although the negative action is likely to have the MOMO indicator crossing into bearish territory again, i suspect index prices could/will stabilize for as much as a week and a half. this is the most common characteristic of the MOMO unlike when it screamed thru the area back in early May 2010 when it helped forecast the flash crash. the pause it takes just after the cross to new trend territory is usually met with some counter trend price action for the markets. but as the trend reversal is set .. the pause in this case of price declines should/will resume as the MOMO seeks the upper range or worse extreme negative territory for prices. at this time i can only guess that could be the last week of Sept to the second week of Oct. if we start to see an acceleration in the MOMO indicator .. i would think we could see the extreme territory a week or two earlier. either way in my mind the extreme territory runs mark an end to a trend. so we would be bottoming and starting what my long term charts are seeing.. about a 8 month (-2.5) run at a new bull market. i subtracted 2.5 for the most recent decline expected into Sep/Oct time frame. however let us first walk our way thru this decline and see how low it takes us and how soon it moves to any extreme readings. to do that we will stay focused on the short term charts.. which will follow. have a great weekend

Edited by Mr Dev, 24 August 2012 - 10:11 AM.