Sunday, October 12, 2008

DJIA and SPX super cycle charts

DJIA: complete counting from 1929 great depression to now.

dji-12345

Close up part 1: wave I, II, III, and IV.

dji-1234

Close up part 2:wave IV, V and present.

dji-345

Compare with DJIA, SPX isn't so regular in term of proportion between waves.  Nevertheless it is worthwhile to take a look because this is the primary gauge I am watching for a long time.

Complete counting from 1929 great depression.

spx-12345

Close up part 1: wave I, II, III and IV.

spx-1234

Close up part 2: wave IV and V.  The projected target over the intermediate to long term is 820 or lower.

spx-345

It is prudent to wait for the reversal of RSI(34) before changing the long-term strategy from short to long.  Note that signal on RSI(34) and oversold of STO(55,1) may indicate the start of new bull market.

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