Support should be set at 2551
That the market finds a local top at this area should not come as surprise for us, maybe to the public, but not for us, our first average was 2613.34, our second average was 2623.07. Additionally other analyst, in this case, Bill, known as EL_hombre_Espantoso on EWT, adjusted his target to 2629 on January 10th. So a top in this area is factored by the masses.
On January 8th, I did mention that we were going to see more more charts from Avi Gilburt. Today Avi posted: For now, the market still has to break down below 2575/80 support to suggest we are in the [b] wave pullback. So you can observe Avi has set his support at 2570. I have attached his charts.
So you see Avi, has now his support at 2575. Well, similar to what we have done, we will try to refine even more this approximation. For this, while Avi has last line at 2575/80, we will set our support at 2551.8, the .618 retrace of the a/1-b/2 structure off the 2340 lows (Alt7link). This is just an adjustment of 23.2 points that we are doing based on the internals we track every day. Since we will be under Avi’s 2575 support we will direct our efforts to detect an impulsive move that confirms 2551 is holding, should that impulse develop we will buy our core positions at better prices. Should 2551.8 holds ideal targets should be 2751 or 2812.
I sent you the banks this morning. We are curious to see how FAS behaves when/if the markets hits 2551.8. This should spread some light. FAS holding 46 with SPX holding 2551.8 should make FAS buyable. Still would like IWM hits 146 before we start this decline to 2551.8 on SPX, IWM was truly close today at 145.25 so we could consider IWM has met targets too, but for all purpose 146 is still ideal. Not hitting 146 would be very strange and unusual.
