In the last report I discussed the Echo Low associated with the very large double bottom T structure of January-February 2016 and the set up of the Buy Signal just prior to the Election. At that time I advised that we had the prescence of a very powerful new T structure which indicated a significant buying opportunity into Thanksgiving and into Xmas.
I advised my members that we would most likely see a short term peak on Black Friday followed by an expected re-test of the breakout zone. It was also interesting to note that Goldman Sachs put out a very bullish research note just after Black Friday calling for a target of 2400 in the spring of 2017. Stocks dropped on that news (a Goldman's curse) presumably because the dark pools wanted to buy at lower prices.
On monday December 5th we had a continuation Buy Signal at the open and although we have numerous cautionary warning signs the market has ripped higher.
As we can see from the T structure, we have at least 5 major arms projecting future highs from the beginings of each of the previous declines. The first one was Black Friday, the 2nd one should be next week, followed by New Year and then late January and possibly late February. Possibly higher highs but not necessarily
The previous T structure associated with the Brexit low was limited by the negative effects of the ending of the very large double bottom T but that isn't the case now and that may explain the ferocious surge upwards that we are now witnessing.
Be prepared for whatever comes next:
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