The Trapdoor to Hell
For the last 7 weeks, the markets has been stuck in a large 50 SP Trading range, with 1835-40 SPX as critical Make or Break Trapdoor to Hell support and 1885-95 SPX as key resistance. We have now broken below the 1835-40 SPX Trapdoor to Hell, which should cause a sharper decline once we close below it.
In my last post, I mentioned: "We have been in a sideways trading range the last month, which ever way it breaks determines the next major direction in the markets." I was looking for a 3/28-31 Low." http://timeandcycles.blogspot.com/2014/03/raj-t-march-2014-review-forecast.html
Actual: The expected 3/28-31 Low was the 3/27 Low at 1842.11 SPX (1), 1 TD earlier. The 3/28 geometric CIT was the 3/27 Low. 3/27L was also as the 24 Squared week cycle Low and a Time squared CIT.
Updated forecast made on 4/2: The current bias is the 4/4 geometric Change in Trend (CIT) should be a swing High.
Actual: We made fresh All time Highs at the 4/4 High at 1897.28 SPX and saw a Key reversal lower that day (2)
Forecast made on 4/7: Due to the many CITs in the coming week, we should see lots of volatility. From the 4/4 CIT High, we should decline into the 4/8 geometric CIT Low. We should then see a brief rally into 4/9-10H at the 4/10 geometric CIT. The decline then resumes into 4/11-14 Lows at the 4/11-14 T&C Cluster.
Actual: From the 4/4 High, we declined into 4/8 Low (3), rally into 4/10 High (4), reversed and decline into today 4/10 (5).
Friday 4/11 is the next proprietary Solar CIT and Monday 4/14 is the next important Trading day Squared CIT from 3/06/09 Major Lows:
Time Squares in TD from 03/06/09 Major Low has produced major Highs
3/6/09L - 25.85^2 TD = 10/27/11H
3/6/09L - 27.84^2 TD = 04/02/12H
3/6/09L - 29.83^2 TD = 09/14/12H
3/6/09L - 31.83^2 TD = 03/18/13L (minor)
3/6/09L - 33.83^2 TD = 09/23/13H -2 (minor)
3/6/09L - 35.83^2 TD = 04/14/14 Next!
What's Next: We should make an 4/11-14 swing Low. The decline below 1835-40 SPX should see a sharper decline, but we should make an 4/11-14 Time Cluster CIT swing Low.