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ORDER RESTORED TO THE EQUITY MARKET

02 Aug Posted by in Market Forecasting | Comments Off on ORDER RESTORED TO THE EQUITY MARKET
ORDER RESTORED TO THE EQUITY MARKET
 

Finally the world is perfect again! Today’s action in the stock market confirms the expectation for lower prices. As we discussed in our posting, last Thursday, the market turned on a dime during Monday’s  early morning trade, marking the end of the correction wave # 2 and the start of the impulsive wave #3.  Basis the September e-mini, the market easily took out the support zone of  1267.  The next lower level of support I project is 1197.75.  Beyond that, 1156 marks the next lower support level.  I do expect the velocity of the market’s decline (especially for the next few sessions, say through the weeks end) to be high.  Accordingly, any stratagy that would exploit this expected move lower,could generate great returns! Specific stratagies employed ought to stem from consideration of available equity, as well as specific tolerances for risk, among other things.

Traders with a longer term view might be interested in my next projected time window for the stock market, which is September 11 thru September 17. Over the next few weeks I’ll work to tighten that window somewhat. Given all the time and price data points I currently have , its not inconceivable to assume that the September time target might very well correspond to an important market bottom.  A possible intermarket correllary, to these equity sector projections, might suggest an important top in gold prices occurring in mid September.