INDEX UPDATE
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Per previous post we discussed the MINI-STEP in the 7500-7900 range, and the start of the decline to start in the OCT 7-13 timeframe. Even though the DOW my break 7900 to the upside, there is no change in the timeframe.
Surprisingly, per my short-term technicals, all of the indexes are in the midrange with some already in the overbought region/CLASS 2 SELLS.
Whenever its in the mid-range, its a flip of the coin basicly and the market is most susceptible to news. The upside potential is no more than 2-3 consecutive updays before it becomes a CLASS 1 SELL.
At this time, I am suspecting the next downswing will start on TUE, and since I am normally off by a day, the down swing should start MON/TUE/WED.
This upcoming downswing will, at least, test last THURs lows. The probability of breaking the 7400-7500 support line has increased strongly. Unless the DOW breaks 8182 significantly(50 points), the downswing is still intact. Prior to the the 8182 resistance, there are some minor resistance lines at 7952,8033,8102. At this time I do not feel that the resistance at 8182(8232)will be broken, and only a slim chance that it will get that high.
Even though the market internals have improved slightly, they do not support a rise of over 400 points in 1.5 days. It strongly appears that a BUBBle is developing fast, since on each rebound recently, less and less stocks are participating in the rebound.
Seeya
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