We have resistance at the following levels
1134.25 to 1134.75
In addition we have 2 key C/T rollovers at the below levels
C/T rollovers are termination points for previous key C/T’s (extensions)
We now have 2 patterns clearly pointing down
C/T (2 days ago)
Down price Target: 1103.75
Up price Target: 1142.75
New Pattern (yesterday)
Down Price Target: 1117.25
Up Price Target: 1140.50
New OAV at 1126.75
Although we’re still in the extension
The extension is only cancelled upon reaching 1133.25 or below 1121.50
we have this dominant pattern
Immediate term: 23 trading days from 12/4/09
Today is the 22nd day.
Up Price target: 1137.50
Up extension: Up to 1148.00
Down Price Target: 1067.75
Down Extension: 1053.00
I’m expecting a decline down to 1100.00 to 1100.50
The question at hand is
Do we pop up one more time and then head down as such, or do we head down from current levels without the pop.
I’m not expecting a decline below 1100.00, but one thing I’ve learned from experience is expect the unexpected.
Could this market tank, absolutely, the market is not over bought but rather under sold, meaning we’re over due for a correction.
In addition we reached 1133.00 (red alert level), therefore all potential declines must be viewed as a potential trend reversal.