Familiar Feel to SP 500 Strength

By: Mike Paulenoff | Sun, Nov 8, 2009
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The strength of this week's upmove in the S&P 500 had a familiar 'feel'; to it. Why? After such a nasty close last Friday, prices managed to avert a plunge on Monday morning, turned up, and (perhaps with a nudge from Warren Buffet on Tuesday morning) did not look back. Friday's 'bad news is good news'; reaction to the Employment Report turned out to extend, perhaps fuel, additional strength for a fourth up-day this week.

Actually, we have seen consecutive up-days in the post-March bull phase, haven't we? Off of the July, September and October pullback lows notice the powerful vertical assault and the overwhelmingly high percentage of up-days.

It just so happens that since the July low, a 21-day cycle low seems to coincide with the start of most of the significant up moves - and also seems to be associated with the initiation of a consecutive number and/or high percentage of up days.

Let's notice that this week's strength started at the projected low of the 21-day cycle, so the market might be in the relatively early stages of another 8%, 21-cycle advance, which projects next to the 1111 target zone.

 


 

Mike Paulenoff

Author: Mike Paulenoff

Mike Paulenoff
www.mptrader.com

Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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