Sunday, February 16, 2014

MTU Weekend Ed. - Overthrow, 2014 (2/14/14 close)

The past week’s advance in stocks likely confirms that SP500 is on its way to a potential March/April top, as speculated in It’s TIME (1/24/14). See Chart 1.

The proposed top serves an overthrow not only to the diagonal count in Chart 1, but also with respect to trend line resistances at various degrees. As a preview, Chart 2 and Chart 3 illustrate.

Near term, one can count a five-wave advance since the correction low in February (Chart 4), that is (nearly) complete (Chart 5). Next Tuesday morning offers a time window for a potential pullback. Let’s see if the market takes it.

On a near term pullback, potential supports are around 1811 (SMA50), 1802 and 1789. See Chart 6.