There has been plenty of top calling from many respected analysts and Traders as many recognizes the RSI bearish divergence and rising wedge patterns.
Yet the market seems to defy gravity once again and keeps making new yearly highs.
I have mentioned a couple of months ago, that the Master cycle suggests, we will see a continued rally into end of the year 2009, with some normal pullbacks along the way. That seems like an impossible feat, but so far it has been doing just that, with the recent October 21st High of the year.
Timing along with the right Cycles is crucial in this market Environment as
one can get seriously hurt, if they were prematurely short.
There are 2 dates to watch in the nearby future, one is Monday 10/26, the other is Friday 10/30, where I have the next daily and hourly CIT. The Master Cycle, if active suggests both these dates will be important highs, don’t be surprised if we see new yearly Highs in the process.
The ideal path is to see a continued rally into 10/26 High, see a sharp drop into 10/27 Low, only to retest the 10/26 high on 10/30 High.
(T&C Forums – Knowledge Contributor)