09-27-2011 outlook

As expected the market had an upside bias.  For most of the day the market was mixed/flat (Dow, S&P up, NAZ and Russell down).  The surge in the last hour exceeded our expectations.  So what about today?

Gold may have found a near term bottom.  The news out of Europe should support the market (of course by next week who knows about any plans being discussed in Europe).

The bias remains up and the final hour surge probably means we gap up to open the day.  I expect the shorter cycles may have built enough down side pressure to cause a pull back at some point during the day, but the day should be up at the end of the day. A level of 1180 would not surprise during the day.

The primary change from yesterday is the 2.8TD cycle should turn up during the day and support the upward bias. This leaves the 5.6TD cycle as the sole down cycle.

Here is the SPX swing cycles:

GL traders.  Do your own analysis.  Feel free to share views.