The Big Picture - the Giant H/S theory

Yesterday I closed with the SP' monthly chart, but it was just the simple version. Lets end today with something a bit more bold, a grand theory of mine, although I'm sure others out there have considered it as well.


SP'monthly - The Giant H/S theory

Summary

The basis of this chart is simply that the entire rally since the March' 2009 lows is part of a giant H/S formation. I'm not sure whether some might like to call this P2, I really don't think it matters anyway. What is clear is that there is an apparent H/S formation across the last 3 years.

One key aspect of this theory is that if it is a H/S formation, would not the RS - which we might presently be in, act in the same style as the LS of 2010 ? If so, we should look for a move to sp'1100 within 2-3 months. Right now, if we assume May is the starting month, then that would mean a conclusion of an ABC fast wave down, no later than end July.

So, one good aspect of this theory is that we'll know real soon whether I was correct.
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For confirmation of the overall 'Giant H/S' theory, we will need a break below the lower channel line of 1100 (1125 by end 2012). Arguably a break under 1000 would absolutely dismiss any further doubt.

Goodnight from London City.