Market Breadth Data******************************

Wednesday, January 31, 2007

It’s all a matter of perspective.
For some, 10 turns a day is not enough;
for others – ten turns a year is way too much.
No matter what the perspective, however, few technical analysis tools can compare with the power of cycles.

P.S. By the way, the 4:10 low was 1434 and not 1431.5

This is an intraday update with an additional cycle
I forgot to mention this morning.

Here are the results from yesterday’s intraday cycles.

The times to watch today are – 10:05, 10:55, 12:25, 14:00, 15:30.

The next CIT date is on the week-end.

Tuesday, January 30, 2007

The chart above is an example of very short-term intraday cycles applied to the SPX the last 3 days, along with an overbought/oversold oscillator.

The times to watch today are -- 10:10, 11:35, 13:05 and 14:45.

By the looks of this chart, one could be justified in saying that the index has painted itself into a corner.

Considering that there is a short cycle due on the 30th, a breakout from this tight range could easily turn out to be a fake. Therefore, I’m offering an alternative view for the CIT sequence.

Saturday, January 27, 2007

A few days ago I mentioned that the markets are getting oversold.

This is where we stand right now.

Thursday, January 25, 2007

Not all cycles are created equal.

And that’s the beauty of it.

Because it allows us to anticipate not only the
timing of the swing, but its magnitude as well.

Wednesday, January 24, 2007

As anticipeted, the January 23rd cycle delivered the expected counter-punch.
And with 2 CIT dates coming due within the next couple of days we should expect more of the same market action.

In the meantime, however, the market is getting oversold, and this should set the stage for the EOM rally

Monday, January 22, 2007

The short cycle due on the 21st sure packed a lot of punch. It is interesting to note that there is a similar short-term cycle due on the 23rd. Let’s see if it can pack enough of a counter-punch.

As noted before, these types of cycles provide excellent short-term trading opportunities, although they may not necessarily signal a CIT.

In order to differentiate between the different cycles, I've labeled the short-term cycles as "sc" on the calendar, and will update them on the chart only if they result in a CIT.

Sunday, January 21, 2007

So far so good.

The CIT date system continues to perform like clockwork, and the fractal nailed the date of the January high, which completes a full circle or a whole cycle.

That’s where it gets interesting. The SPX is close to a breakout and, if it does not occur within the next time window, it would mean that a more substantial retracement is in store.

Sunday, January 14, 2007

It’s interesting to note that the same fractal which marked the Dec 18th high, points to a new turn date – Jan 16th. This also happens to be a CIT date. It also so happens that the SPX is overbought going into that date.

Thursday, January 11, 2007

The chart above clearly shows the support/resistance areas that need to be watched.

The SPX started 2007 in oversold territory. This is no longer the case. The negative divergences with money flow, however, still persist.

Sunday, January 07, 2007

In December, I pointed out that the S&P was forming negative divergences with money flow. This is usually a sign of distribution associated with market tops. There has been no damage to the weekly trend so far, but the daily chart shows lower highs and lower lows.

The market is getting oversold and the first CIT date for 2007 is on Jan 11th. The next few swings, I believe, will be crucial in determining whether we stay in a trading range or break out of it. As usual, the Zero Gann lines and the support/resistance levels will provide the answer.

In addition to the CIT dates marked on the chart and calendar, there are short term cycle turns on Jan 21st, 23rd and 30th. These cycles, so far, have been more closely associated with intraday moves, so I’ll keep them separate.

Thursday, January 04, 2007

Let’s start 2007 with a longer term perspective.

Attached is my forecast for the first half of the year. There are two distinct scenarios, depending on how the year begins. After June the two merge but I’ll talk about that later.

It should be noted that the more important part of the forecast is the direction of the trend, and not its magnitude.

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