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Jan 7th, 2010: Bears Might Want to Turn Away

Posted by pugsma on January 7, 2010

This move up on the SP-500 does not look like it’s over.  The 1141 rectangle target was met today, with a high of 1142.46.   However, it now looks like my maximum target for this wave (5) completion of 1154 could be hit.  And if it’s exceeded, then what?

The “then what” is something the perma-bears have feared the most.  A melt-up through the “Lehman Gap” and possible target for Wave [5]  in the 1200 to 1230 area in a matter of just a few weeks to a month.  That’s my new alternate count in purple.  Sorry Bears.  But it’s now very much on the table.

It’s going to get interesting into next week with Q4 earnings coming out beginning with Alcoa (AA) on Monday Jan 11th.  The financials are already on the move higher.  And if XLF takes it’s Oct 2009 high of 15.76 on good Q4 bank earnings, then the SP-500 is going to be hitting new highs for the next month.  Add in that fact that Q4 GDP could print +4 to +5% growth and you have the recipe for an explosive move higher towards 1200.  I’m not saying this is the bag just yet, but I’m watching 1154 very close the next few days.

15-min Chart (EOD):

60-min Chart (EOD):

Daily Chart (EOD):

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