monday trading, page-59

Market seems to be in sell off mode again. The rally since the lows on the ASX has really not been convincing and I wouldnt be surprised at all to see some decent falls this week. McLaren says that we need to rally past 2 May and Terry Laundry is saying much the same thing with a high expected at the end of this month. Here is the latest from Terry Laundry.

T Theory Observations Update for April 28 2008.The market is limping upward to the current Short Range T’s projected peak at month end as noted in the updated PDF chart below. You should download the file now.



Looking over the daily chart we also see another interpretation of the T time symmetry that I discovered in 1973; the simpler Price T. These Time symmetry’s are simple to construct because they only make use of the S&P 500 daily “price” bars, but they may not be completely reliable under certain instances.

Nevertheless this S&P price T says that the rally from the mid January momentum low should only be able to last for as many days as the decline from the mid October true intraday price high, down to the S&P to the Momentum low. Remarkably the Simple T’s projection of its peak date is roughly identical to the volume Oscillator T ‘s projection of a late April peak as you can readily see in the chart.

For this period therefore we can be more confident that a peak is on tap next week and it is more likely to be an important one. Longer spanning Ts are generally more appropriate when the longer term outlook needs to be understood. This price T will be needed as we move along in May.

Looking ahead to next week, it seems possible that the Federal Reserve may disappoint, either by no cut or one last small cut. If so, it might seem that this price T was not the basic cause for a topping. But if we can show some persistence to the late April peak, then the larger Simple T will become the more powerful tool in T Theory to look ahead to the next important oversold condition.

http://www.ttheory.com/