Inverse pattern working wellHere is some background on the technical picture that I'm looking at. Just posting target numbers isn't all that helpful to those who are into the charts and patterns.
The trading pattern in SPX since Sept 1 is the inverse of the drop from Aug 10 to Aug 31. We are at the equivalent of Aug 19. I will caution that you cannot directly compare prices and especially dates for timing purposes. The form is similar and I expect that to continue.
Notice double top Aug 17 and 18, and double bottom Sept 23.
I expect this also means that we see one more push up and form a triple top for SPX during the next 2 weeks or less. Timing is hard to compare exactly, but I suspect that this last little part of the rally will happen much faster than the comparable in Aug. Expect whipsaws at the top, then down we go.
Rifin, financials, has much more to run here than the limited upside on SPX. Take a look at the Aug inverse on that one. Compare to SPX.
Financials should top first, then SPX. The big drop in coming months should be equivalent in form to the inverse of July 8, 2009 to April 26, 2010. Time should be much faster though. Same move percentage wise and a lot faster.
I'll explain some more calcs tonight.
SC