26 Jun 2013

Prices have hit our target or close to it.  We could see some more upside.  Today the ES Stayed overbought for pretty much the entire day even before market opened.  This is the reason why "Overbought" doesn't mean sell.  Our 60min SPX entered the overbought area as well.  I guess it was playing catch up to the ES all day.  One thing to note here is that the ES managed to hit its 1hr 200ma line and have closed under it, while the SPX 1hr chart shows that the prices have not touched our recommended 75ma average, also the 50% Fib retracement, and trendline that hovers above it.  Our reactionary date is on the 28th but still within the requirements even if it falls a day before or after.  Im not assuming that the markets will go down from here, but we have to keep in mind what has more potential of reacting.  A price making a high into a reactionary date continuing higher or turning down.  Watch the Stoch. for this clue.  We can potentially move past the 75ma target to try to fill the gap made on the 20th.

Mid-Term: DOWN
Short-Term: UP (typo - had it at DOWN)

Note:  I have been doing some work on a potential forecast for a bottom.  Please check back for some update to this.