T Theory expert projects high and low turn dates for the S&P 500 during 2010 - and beyond: Terry Laundry's 1/12/2010 update

The topic of turn dates during 2010 is getting more interesting now that we're getting close to the first set. There are different sources for such predictions of course. This post will feature the T Theory predictions bt Terry Laundry, partly because his T Theory work enables him to make some quite reliable turn date projections. On Tuesday morning (1/12/2010), after discussing why his projected SPX high of 1161+ may occur before January 21, Terry Laundry mades the following projections for turn dates during the rest of 2010, in his post "T Theory Foundation: Short Range T Theory Comments for January 11 2010 Data", http://www.ttheoryfoundation.org/2010/01/short-range-t-theory-comments-for-january-11-2010-data.html:

On the Sunday January 10 T Theory Observation posting (see Terry Laundry's T Theory Observations: Terry Laundry's T Theory Observations for January 2010) I introduced the complex pattern that forms at the projected peak for any T coming out of a double bottom. Today's chart uses the same parameters and you might want to calculate the forecast for the current Short Range T using the same equations. Roughly speaking, the Ts projected peak from the B-C double bottom is just before mid-May (May 9th?) and the width between B and C is about one month. Therefore a first echo momentum peak will occur around April 9th, a month early.

After a two week decline, a two week rally into the main May peak will likely produce just a token new May high. From this main peak the main null will make a very oversold condition one month later, say around June 9th. (This low is analogous to the mid August 2007 low prior to the rally into Sept-Oct 2007).

The rally from this low should carry to the long term projected top, August 26th 2010. The first phase of that decline will last 3.5 months into a mid December low because the 2008-2009 double bottom was 3.5 months wide. You can calculate your own dates if you have the data. Send them to me and I will post the results.

I'll be proud if any readers take Terry up on that offer!

I'm just as happy to incorporate Terry's described turn dates into our strategies for this year since Terry's work is good, and they also correlate well with some turn dates that have been described by others with good work (including the recent public comments of Ray Merriman in his weekly preview comments). [Note - Marc Faber on Bloomberg TV just described his outlook for equities markets in 2010, and his description is right in line with this (and with the Presidential cycle we examined here on December 27); but that's just an aside, not the basis of our strategy. Besides, he wasn't nearly as detailed! Just said a correction soon, then a rally but maybe not to new highs, then down by the year end.] I don't know yet if we want to correlate these with other methods like the Bradley (see posts under the "Cycles on Bradley model" label) but can eye those as we go. I'm not a cycles expert, just have learned to understand some basics and appreciate the methods. Apparently there are cycles, as mentioned by Andre Gratian (and in a recent feature post we did on Jim Curry's cycles depiction), that support the idea of low points coming up fairly soon. Standard cycles work measures based on lows. Terry Laundry's work projects market tops.

There are other very interesting aspects of Terry's T Theory work. These include his long-term, big-picture charts and analyses. Below are copies of his long-term charts he posted over the last several weekends at his T Theory site (always in the list at right). The copyright in these is held by him or his T Theory foundation organization (as indicated on the charts). You really must visit his site and listen to his audio comments that he posts with these and other charts, to really understand what he's presenting - it's fascinating: