A Leap of Faith

I've come back for you…
to remind you of something. Something you once knew…
That this world is not real.
To convince me to honor our arrangement.
To take a leap of faith, yes. Come back…
so we can be young men together again.
Come back with me…

Inception, 2010, Dir. Christopher Nolan

As I suspected over the last few days, the renewed strength of the Bull market and the recent behaviour of the T volume oscillator is suggesting that the series of recent shallow lows has formed the new 'Cluster T Structure' marked in blue. The positioning of this T structure is provisionally placed at 19 January.
This provides for a series of highs in mid February in line with the original Large 'Trump' T structure, but also projecting into mid and late March in line with the cycle highs marked in pink and green.

Of course, as you can see, we find ourselves at an important rising line projected from previous highs, and so it wouldn't be surprising to see some consolidation as this level similar to recent passages. However, the additional strength I am observing here seems to be suggesting a break upwards through this line and targets 2350-2400, perhaps quickly.

Chart of S&P 500 for 13 February 2017

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Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.

 

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