Monday, February 7, 2011

The end came today...or did it?

SPX made a HH and HL and closed in the positive.  It was not a cloud walk day but close.  It sprinted to 1322.85 by 8.45 and then it was slow churning decline to 50%.  RUT rallied to 812.68 by 8.00 and also had a slow 50% decline.  A small counter move ended both close to high of the day and at the highest close since 666.  I was very impressed with the rally.   
This is my hourly chart of  SPX.  The end came to day.  Wave 1 took 2  half sections and moved from 1011 to 1129; wave 3 moved 3  half sections and went from 1039 to 1227; Finally wave 5 has moved the 2 sections and gone from 1173 to 1322 at the exact top of the channel.  It also backed off precisely at the top.  I have been calling this for a while and was glad it happened today.  Now all I need is a little follow thru and I can look forward to a good size decline of 60 some points on SPX at the minimum.  However should we jump higher then I will quit looking for a top.  This is the one I was looking for;  I saw it  and If it doesn't work out it will be abandon ship time for me.
This SPX daily.  It has channel and Gann angles from July 1st low.  SPX today hit the top of the channel and the 3x1 line.  I wrote some time ago this would b the spot where the top makes most sense to me.  This will prove to be a very good resistance.  If 1260 doesn't hold next stop is 1130 something a very few are talking about.
Today is also the anniversary from Feb 5th low.  I believe all these things have topped the markets today.  
I will stay bearish one more day. 
Thanks for reading my blog.

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