12-16-2011 outlook

Finally got it right as we closed up.  It has not been a good week over all as I have been too optimistic - expecting the market to muddle higher as it sold off.  I feel we still have some up side potential as we have sold down under the expected level based on the 40TD DPO.

The 40TD cycle is up, the 20TD cycle is down - slight negative bias, but possibly some upside as the market is lower than expected based on DPOs.  The 10TD cycle is down and the 5TD cycle is up  The 5TD cycle should be a bit stronger than the 10TD cycle giving us some possible upside.  the 2.5TD cycle starts out up and tops by around 11am - should provide some strength at the open.

I believe the market opens to the up side and may fade later in the day.  It is triple witching Friday so anything is possible.

Her is my interpretation of the SPX swing cycles:

GL traders.  Be careful