Wednesday, July 29, 2009
I updated my long term S&P futures chart (see right side of blog and above) which has followed my projected path (see red lines) the past few weeks. If it continues to do so, we are due for a short term setback, followed by one final strong rally to the 1000-1100 area before forming a major top that will be one for the history books. Any significant decline from this point will have my full attention. I will be looking for breadth, volume, sentiment, and most importantly - wave structure. But until the evidence suggests wave 3 is underway, I will plan for one more final strong rally where the bulls will give it everything they have to push this market to fulfill their new bull market dreams. But that's all they will result in.....dreams. It will lead to the biggest decline we'll see in our lifetime.