Wednesday, 23 May 2012

12pm update - next target..sp'1280

I'm getting tired, this market is again really starting to annoy me. We are in a relentless SIXTEEN day down cycle, and we are still yet to see ANY real panic, never mind a capitulation day. The thing is, we're only 20pts from the next main level on the sp' of 1280. Another 20pts sure won't be enough to merit capitulation. I'd look for a 35/50pt move. How low we going in this wave, 1275, 1250, 1200 ?

Sp'60min, count'2




Whilst the key support level on the sp' to break is 1292, the dow has already broken the equivalent recent floor, and arguably confirms we are in a new wave lower, wave 5 of 5 - of minor'1.

As for the SP', first target remains the 200 day MA@ 1280, which 'should' in theory occur tomorrow. If that is the case, that should take the VIX to at least 27.

Time for lunch..back later