Monday, August 2, 2010

Market Timing Update (8/2/10 Close)

Almost there ...
If the proposed ending diagonal is true to form, the maximum upside is 1152.08 (1x) in SPX. Note that today's high is just shy of 1127.61 (which is 0.618x).

The grey labeled count in Chart 1 is the front-runner here. Note the negative divergence over the past 10 days or so.

As the squiggle count in Chart 2 shows, after a possible squiggle high overnight or tomorrow morning, either the wedge (and [ii]-up or 2-up) is done or a of (e)[c]2 is done.

The VIX (Chart 3) and the USD index (Chart 4) appear ready to rebound as well.