No replies to this topic

[blustar]

Yesterday's sell-off created some VST damage to the technicals as noted in the attached chart. I sent out a chart on Monday that showed a top due this week. The 8 TD top came right on schedule Wed., something it hasn't doesn't lately, as it has been right hand translating.

The 8 TD low is due on Tuesday next week, but the lows have been right hand translating also, and I expect that will continue. By Thursday next week, I expect we tag the 50 Day Moving Average near 1942 SPX. That being said, I believe most of the damage has been done yesterday.

The market is coming into a top of more importance as we probably follow the same pattern from Dec 11, 2013 into Jan 15, 2014 from Jul 17 to Aug 18, 2014. The larger 150 TD low is due around Labor Day and a 6% drop would not be unexpected in that time frame.

My Bottom Line: sell all rallies for now. We could see 1945 SPX soon, like today. After the VST bottom is complete next week, we likely see higher highs into August into the low/mid 2000's.

CHARTS