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Market Opening Outlook 11/28/11

World markets are throwing a party this morning. The 5 day cycle, which hadn’t been cycling for a couple of weeks, finally has an up phase. The wave has turned up after downtrending since November 13. The 2 day cycle outer edge band has already hit the top edge of the 5 day cycle wave on the chart at approximately 1196, so the 2 day cycle high could be at hand when SPX cash opens around 1187 or so, although the futures certainly could make a run at those outer bands now at 1196 and heading for 1200 by the end of NY trading.

The first sign of a downturn would be a drop below the inner 2 day cycle line now approaching 1185. Other key support lines are the inner 5 day cycle line now at approximately 1178, and the 2 day cycle centerline coming up fast and heading for 1178 then 1180 over the next couple of hours.

2 day cycle indicators on the futures are overbought, but not yet on sell signals.I would expect to see negative divergences before the rally ends. It will be an interesting morning.

Follow my real time intraday cycle updates with cycle price targets during the day at The Stool Pigeons Wire at Capitalstool.com.

Here’s a look at the Spoos 30 minute bar chart as of 9:25 AM NY time. Blue lines more or less represent the nominal 5 day cycle. Red lines more or less represent the nominal 2 day cycle. The first oscillator more or less represents the 5 day cycles. The 3 lower oscillators more or less represent the 2 day cycle. Cycles vary in length and are not the sole component of price action. Outside influences and random noise may have a significant impact at any time, often unpredictable. These charts and their interpretation are meant for educational, informational, and entertainment purposes only and are subject to the terms of use of this website.

S&P Futures Intraday Chart- Click to enlarge

The daily cycle charts are updated in the Wall Street Professional Edition market update every day. Get daily updates on the 4 week, 6-7 week, 13 week, and 6 month cycle projections along with regression channel and equal width channel support and resistance chart updates daily in the Wall Street Examiner Professional Edition Daily Market Update. Try the Professional Edition risk free for thirty days. If, within that time, you don’t find the information useful, I will give you a full refund. It’s that simple. Click here to become a member and get instant access to the current report and all past reports.

Gold’s rally has been far less spectacular, with a couple of 2 day cycle indicators already edging to the sell side. A break of the 5 day cycle line now coming up at 1714 would signal a probable reversal of the rally.

Intraday gold chart- click to enlarge

The technical outlook for gold and the Precious Metals stocks are updated each morning in the Wall Street Examiner Professional Edition Precious Metals Report. Try the Professional Edition risk free for thirty days. If, within that time, you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information.

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