Friday, May 17, 2013

5/17/13: Looking for another 2 weeks of this rally

Wow, can't quite imagine a more revved up rally than this one in the past 3 years...maybe the April 2010 ramp into the May 6 flash crash?

Here is a recap of the cycles I'm looking at

1.  CCI 8: looking for a negative divergence to develop, still don't see this so waiting for Monday/Tuesday

2.  CCI 13: UP.  After the drop into 1648, price is back in the up zone.  Cycle remains up into early June with weakness starting to develop 5/24

3.  CCI 21: UP.  Expecting cycle to show some weakness around June 1, 2

4.  CCI 55: UP.  I think this is the primary driver right now...had a mega negative divergence back during the Boston bombing event.  Expecting cycle to show weakness starting June 1, 2

6.  CCI 86 UP.  This is still up and showing weakness a bit later than June 1, 2.

Given the above, the trend is still incredibly strong into late May and then choppiness to develop early June before I expect cycles to point negative into late June, early July.

If time is not ready yet, then I am looking for price to reach 1700-1720 the following week.  Next week, 1675 Monday/Tuesday before a "correction" into 1660-1666 then back up into 1750 early June.

Crazy market, it's not over yet, and I don't think it's over until we hit the 1900 area whenever that is  1900 STILL WOULD qualify as an EXPANDED FLAT since 2007!! (1.382 * length of 1576 to 666)

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