|SPX weekly with Pre-Presidential cycle projection.|
Friday, September 2, 2011
Here's a chart on the pre-presidential cycle update. The blue line is the projection from the beginning of the year, the magenta line is the projection from the current week. The oval is the range of divergence for the end of year time-frame that existed last month.
This is uncharacteristically bearish for a pre-presidential year. The year open price has become a broken support. This level should then become a resistance level. In my opinion this bodes ill for an up-year, unless the market can break above with some energy.