While many are now beginning to see the bullish strength of the stock market, there are reasons to expect a pullback. We'd thought that might occur today or this week. But aside from some chop that may occur this week, the pullback may be postponed to next week. Mike Korell of ChartsEdge is one of the talented forecasters saying this. Let's see what else he's saying at his webpage at
http://www.chartsedge.com/wp/ (thanks again Mike!):
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Posted: October 17th, 2010 | Author: Mike Korell | Filed under:One-Day Market Map | No Comments »I personally trade in several time frames. One of these is quarterly. In order to do this I create a forecast which extends out six months. During the last year these forecasts have been quite good. I began sharing these on this thread at end of August, and the results have been accurate.
The fourth quarter of 2010 should continue higher into December 24 at a high in the area of 1300.
The first quarter of 2011 shows to trade lower at least into March. There could be some recovery at that time, but I have a couple months to prepare for that trade.
In the near-term, we are approaching a consolidation which is aptly timed to late October which is well known for sharp selloffs. At this time I only expect this move lower to be 15 to 20 SPX points, although more could develop. A five wave move higher will follow into December.
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