Sunday, October 17, 2010

S&P 500 ~ Weekend Update ~ 17 October 2010

Last week the SPX approached the resistance area between 1175 and 1180 and tried to breach it. So far the bulls failed to do so but the bears couldn't profit from it either since the market was just consolidating just below that level.

Even though 1180ish hasn't been breached yet I'm leaning towards the bullish scenario, i. e. new highs above 1220 later this year.

I expect wave 3 to peak between 1220 and 1250, followed by a sideways wave 4 consolidation and finally an end of year rally to 1300ish to complete wave (1).

Below you can see my bullish long term count. Can't remember when I posted it last time so I thought it's about time...

Basically, it's a copy of the bear market in the 60's/70's. So, first, I expect a new all time high (!) at around 1600 anytime next year or in 2012 and then a new bear market low below 666 late 2012/13 (12/21/2012 possibly?... : ) ).
At first it may look a bit unlikely but at second glance it isn't that unrealistic: A new all time high sponsored by the FED and once the high is reached the whole system blows up...

Have a nice week and feel free to comment or write me an email to admin|at|wavaholic|com.