I am very short on time tonight and thus my missive is mainly via three charts, that are new to this blog.
I have primarily deviated from my usual detailed SP500 Index posting and analysis to suggest that the broader equity markets globally are now signaling that the time has arrived to position yourself for future profit.
This essentially implies that despite last weeks sell-off, I am still of the opinion that my past analysis strongly suggesting that we are currently in an equity market correction (versus a new bear market) in the SP 500 and other global equity indices remains intact.
I have posted the NYSE composite Index below, because it shows a much broader diversification.
Equally, the Canadian TSX Index would be a more representative index for those interested in commodity stocks (or even commodities).
Last the recent strengthening USA Dollar Index posted below is suggesting why international capital flows (think liquidity) are now favoring the USA at least for the time being, despite the serious USA debt dilemma.
In summary in my view, despite the global economic malaise and investor fear that has spread and what you may read or hear in the media, the charts below (the technical truth) signal and suggest that it is now likely a good time to position capital appropriately for future profit.
Keep in mind (while looking at the NYSE Gann angles shown) that looking out into the future, we are nonetheless entering the final phase of a bull market that will not show the strength of past advances.
Also, assuming this bullish forecast comes true, in every market bottom and correction some stocks and sectors lead while other lag.
Gold, by example lagged the cyclical fall of commodities that was initiated early in 2011. Likewise, there is evidence now that certain USA technology stocks may be one of the sectors that lead and strengthen more rapidly than others.
If for any reason, my forecast that I have been detailing in past video analysis and blog comments for some weeks turns out to be wrong, we should know very soon given the month of October just ahead and the key make or break support levels now near as we test old lows. This is not my primary bullish viewpoint, but is given as a "what if" analysis to show that savvy analyst and traders always must keep an open mind.
The charts always show the trend truth. Natural Law analysis and cycles add considerable foresight to that trend truth. Please note that the extra chart this evening are posted as a bonus and normally reserved for KRTT subscribers.
For more information on coaching or learning KRTT technical analysis, KRTT cycle and natural law theory and our proprietary theories contract KRTTcares@KRTT.com
Chart the trend, spot the trend, and go with it.
Best regards,
James Kelly Sr.,
Editor in Chief, BBTL Blog
www.KRTT.com
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2 comments:
Mr. Kelly:
Would like to hear your thoughts regarding today's new low - whether its a double bottom -or- just a pause on the way down to the bottom of WAVE 5. Once this bottoms, do you still feel a rally into the end of the year? How high?
Hi Jeff,
Hopefully my post of October 04, 2011 answers your question. If I missed or overlooked something - simply ask again as I have been quite busy lately.
Immediate upside target (ultimately it will go beyond this initial target) is SP 500 = 1230
The LAST and FINAL LOW may or may not be in BUT MUST BE IN around late October, 2011.
i.e. continued declines in November are NOT part of my current/ ongoing forecast.
As always - I must reserve the right to change my mind (from my current BULLISH VIEW) as new information comes into the "dynamic" market virtually daily.
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