Thursday, January 29, 2015

Market Timing Update (1/29/15)

[EOD] Stocks -
This morning, stocks took the opportunity to register a low discussed in yesterday's EOD update. Let's see if today's low will hold before a new high. Chart 1 updates our near term tracking counts.

It should be helpful to review the structure of sell-off in SP500 so far. We note that
[1] From the all-time-high in December 2014, we have a visual three-wave decline so far. See Chart 2.
[2] From the Jan 22nd high, we have a visual seven-wave decline so far. See Chart 3. Today's low could also be a potential LDT/EDT from the red potential orthodox high in Chart 3.

Note that 3 and 7 are corrective waves.  Note also that LDTs tends to experience a deep retrace. Thus, the downward gap around 2050 is likely to be filled sooner rather than later.

[910am] ES update -