As mentioned in my last report, prior to the much anticipated 28 February peak at the end of the Large gray T structure, there was some doubt as to whether the Cluster T structures that had emerged during the final stages of the large gray T structure would have any effect upon extending the gray structure into March and April.
This was due to the ominous drop in the T volume oscillator just prior to the end-date which in-effect was cancelling out the extensions of the Cluster T structures and bringing them into doubt.
It is now clear that we did indeed make a final and dramatic peak in-line with the end of the Large gray T stucture centred around the per-election low. The market used every day of that projection in its search for new highs and a distinct lack of buying power and market breadth has been noted since the pop on the 1 of March.
The one day margin of error was previously noted on the 25th January and takes into account the fact that the T volume oscillator turned 2 days prior to price at the low. This is indeed a powerful example of T Theory's accuracy in projecting highs from major lows in the market.
The recent descent from the highs towards 2350, has been gentle and orderly without any real panic and Friday's reaction to the strong employment report did, at least initially, trigger a short term Buy signal and there is a short line of cash-build up and the possibility of a small T which if confirmed during the next days would project highs towards the end of the month. This will be confirmed IF the T volume oscillator continues upwards and cuts the descending cash-build up line from the oscillator's recent highs.
As you can see there is also a longer line of cash-build up going back to the oscillator's peak at 72 on the 15 November and when the oscillator does cut this line (probably after a significant low yet to be seen) we will be able to declare another large T structure.
We watch the oscillator for clues, but we use price as the leading indicator.
Be prepared for what is coming next.
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