Robert,
Time for a rodeo roundup:
The Bradley indicator turned down on July 6th, nailing the 7/6 peak in the NYSE at 660.81. The Bradley has no more turns til 7/17, so a break of that high would give a strong Bradley inversion Buy signal.
Cycles remain bullish, and recommended a buy of the low of the day on Friday (7/6) for a profitable trade, and now recommend buying the low of the day Tuesday as well as the low on Wednesday for a profitable trade. S-T bullish scenarios would be temporarily hampered if we close below Friday's NYSE low of 654, since a 22 day cycle low was due in on that day. But even if that happened on Monday, a buy of the low of the day Tues. (via a 36.2 day cycle low) & Wed.(via a 26 day cycle low) would remain in effect, so a bull trade for the coming week looks bound to work for those who will hold out til Monday after expiration (7/16). These are both very powerful cycle lows due that nearly always give strong buying propulsion to the market.
Wave wise, we look to be finishing the wave 4 correction since the starting point of this 5 wave move up from 6/11's low. Wave 1 into the 6/21 high, wave 2 into the 6/24 low, wave 3 into the 7/6 high, wave 4 (finishing up, if not already done). That's sets the stage for wave 5, which can be no larger than 6X the size of wave 3. Since wave 3 in this case was 96.55 pts (1405.29 - 1308.47 = 96.55), we could conceivably see a 580 S&P point rally for this 5th wave. I'm thinking it'll be more like 250 from here, taking us up to around 1650 by mid Sept. before a sizeable correction develops.
In summary, it looks like strong up for this expiration week right into the following Monday. Then we have to be on s-t alert due to the Bradley turn on the 17th and s-t cycle highs due on the 20th & 23rd (16 & 22 day highs respectively).
Let's run with the Bulls!
B. RidaH |
