S&P 500 Market Update_7_29_12

First and foremost, I was really excited by the fact that I was able to call this past weeks turn-around before it occurred. Granted I had it coming after the completion of what I thought would be one last triangle, but the important part is that it was done objectively and correctly predicted the complete opposite of what my original and incorrect assessment provided.

That being said, I have a new chart for this coming week. Regardless of what happens in the next week or two I am still predicting a very strong down turn in the markets. I believe that the current wave movement is the final sub-minor movement required for the completion of wave-2 which, of course, proceeds the falling waterfall effect of wave-3. I decided to chart the S&P 500 today instead of the DJIA, as I think it is more widely traded and resultantly displays a more accurate representation of the herding behavior which creates these patterns.

I am holding $1415.87 as my upper resistance. The alternate and absolute top resistance is $14.21.85. If the market breaches both of those levels for a significant period of time, more than two or three days, I will have to consider re-evaluating my count.

Until that happens however, my posted count for this week is listed below. Incidentally, the DJIA will likely follow a similar pattern over the next few days.

I have also added a 25 day moving average to the 50 and 200 day in the hopes of spotting some interesting crossover points.



- W