ChartsEdge's comments on their S&P 500 cycles forecasts outlook

How to interpret the several types of ChartsEdge charts, especially if you're a swing trader rather than a daytrader? Well if you're a swing trader then you're also looking at the levels I've been talking and tweeting about, plus indicators like money flow (positive again), stochastics (turned up again), etc. As well as Objective Elliott Wave, Andre Gratian's work, T Theory ... And there are those ChartsEdge forecasts as the TCI graph, their long-term BP, and their weekly and longer-term cycle forecasts. Now, Mike Korell has posted the following comments of his own, earlier today at his ChartsEdge site, at http://www.chartsedge.com/wp/. Personally, I'm thinking that what Mike is saying, suggests that we may get a shallow pullback prior to reaching SPX 1165+, or some consolidation, while remaining above 1100. Let's face it, support should be above 1115 now; and besides, a 5% drop from 1150 wouldn't go much under 1100. I'll be continuing to state how I'm reading the probabilities anyway, day by day. Also quick note, Monday is a U.S. market holiday.

So, here are the comments of Mike Korell on his cycles work at ChartsEdge:

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Interpretation

Posted: January 14th, 2010 | Author: Mike Korell | Filed under:One-Day Market Map | No Comments »

I got a phone call today from a friend who has watched these charts for a number of years. His complaint was that there was too much information and that a brief integration of the various techniques and ideas might make all of this more usable. I don't consider myself to be a very accomplished writer, but I will make an attempt to present my view of where the market is going in the context of the various charts posted here and elsewhere on the Chartsedge website.

I will always be referencing the S&P 500.

The TCI chart generated a signal on the 13th, so I am looking for a short-term high sometime between now and the open on Monday morning. The Long-term BP implies a rise into the open on Monday, and then lower. The other thing which is obvious on that chart is that higher prices are likely later in the month.

The cycle charts agree with most of the above.

I am always suspicious of moves lower in an upward trending market. In the case of the S&P, there has just been a lengthy period of sideways trading with a breakout to the upside. The number of sellers should be limited in these circumstances with good support in the 1100 area.

I hope you find this analysis helpful.