the Correction has started

The correction I wrote about last week is now under way. Fridays big down day was the start and should last a few weeks. The weekly R2 pivot was the high last week and told me not to look for new long positions. The Dow Transports break down over a week ago was the warning signal. I wrote about that on http://www.freestockcharts.com/ . This week look for resistance at 11900-11950 and first support at 11750 then 11500.

Update: 2/1/2011: hmmm I maybe wrong

Long in the tooth

This rally that started in early September seems to be getting long in the tooth. The Dow Transports pulled backed last week but the Dow Industrials have not. I think we see a 10% correction soon(30days). This week look for 1300 on the S&P and 12000 on the Dow for resistance.

Gaps

The above chart shows how the NQ furures(NDX) moves up and down to fill the open gaps(purple lines) on RTH/USE time.

Full moon

On Full Moons(this Wednesday), we usually see a short term reversal. This is OPEX week(options expiration). We should see support at 11500 and resistance at 12000 strike price this week. S&P 500 should see the 1300 strike should get pinned this week.

get well soon....Mr. Jobs!

Dow Jones Monthly R1 pivot 11755

I'm watching the Monthly R1(MR1) pivot(green line marked R1) for resistance at 11755 on the Dow Jones this week. 1285 is the S&P 500's MR1 pivot. Support comes in at 11575 on the 20dma(yellow line) and open gap there from 12/31.

Day-Traders love pivots

Intraday pivot points show day traders where the best odds are for intraday price reversals. Pivot Points define the days trading range(s1 -r1, s2-r1, etc.) . Today, the NQ(NDX) went from the R1 pivot, to the S1 pivot, back up to the R1 pivot, and back down to the S1 pivot....see the white circles on the charts on the green pivot lines. Pivot ping pong? Each 10 pt. price swing is worth $200 per contract.

2011 Yearly Pivot Points

2011 Pivot Point Analysis:

S&P 500 =Yearly R1 Pivot(YR1) at 1343 and the Yearly S1 Pivot(YS1) at 1091. The Yearly Pivot Point(YPP) is at 1176. YR2=1427 and YS2=925

Dow Jones= YR1 pivot at 12263 and YS1 @10252. The YPP is at 10938.
YR2= 12950 and YS2=8927.

NDX= YR1 pivot=2205 and YS1=1866. The YPP=2052

Gold's = YR1 pivot is 1555 and YS1 is 1167 and the YPP=1300. YR2=1667 and YS2=911.

Crude Oil's= YR1 pivot=99.95 and YS1=75.00. YPP=83.54. YR2=108.45 and YS2=58.65

the R1/S1 pivots have 70+% odds and the R2/S2 pivots odds are in the 80+%

2011 Bradley Model

The 2011 Bradley Model is calling for another roller coaster year. There will be a big move starting in February and lasting through July. Will it be up or down? The model only predicts turning dates, not the direction. The turning dates are based on certain planetary alignments. It is uncanny accurate...IMO. Last years model showed the lowest reading ever and what happened? The Dow Jones dropped 1000 points in 1 day. The most ever on record! In 2007 the model called for the markets to top out on Oct 16th.....it topped on October 11th. The 2008 model showed a major new trend would start and in 2008 the market dropped almost 50%. In 2009 it showed another major new trend and the market bottomed in March and then it rallied(up 60%) for the rest of the year. We should know the direction on the 2011 model by March 1, 2011.