A Few More Inches Perhaps?
This will be an abbreviated weekend report as I am packing up to leave Las Vegas for my return home to the Los Angeles area. The Traders Expo at Caesar’s Palace has been a phenomenal event this year with some extraordinarily talented presentations.
We are now 45 trading days (TDs) from the crest of the prior 39.8 TD cycle high on September 19th – and 85 trading days from the prior 79.6 TD July 24th duplex high. This morning saw a gap open with the 2,062.50 price octave on the S&P cash index finally getting tagged – this level has been my outstanding target as you know. Time-wise, though, we may have just a few more inches to go. I note that next Wednesday, November 26th, will coincide with 48 TDs from the previous high – the prior low-to-low pattern spanned a similar 48 TDs.
In the chart above I show my regression analysis of the time points encompassing the 07-Aug-14L, the 19-Sep-14H, and the 15-Oct-14L which points to 26-Nov-14 as a potential pivotal turn as well. My measures of price velocity, too, are displaying the type of divergent structure that could well define a high next week. Note how both my 7 and 14 day components have been coming downhill – with the latest uptick in the 7 day. A couple more inches might just do it….
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