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Mixmaster Market

SPX (cash) opened weaker, falling below the 8 day cycle centerline, but is since has recovered above that line. The 2 day cycle projection of 1290 was almost hit in the opening moments. 5 day cycle indicators are on the cusp of sell signals, but the 2 day cycle is opposed, with the indicators on the verge of buy signals. This is a recipe for a rangebound market.

The first challenge on the upside will be to get above the 8 day cycle centerline at 1293.50, and then the 5 day cycle centerline at 1296. Failing that, they should pull back again.

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Here’s the cash SPX chart (time stamp in lower right corner).

SPX Cash - click to enlarge

The SP futures (or ES electronic mini S&P) have been weakening since peaking at 5 AM NY time but they are holding near the declining 2 day cycle centerline at 1291. 2 and 5 day cycle indicators are whisawing around their signal lines. The 2 day cycle centerline and the 5 day cycle centerline around 1294-95 are the key resistance lines that need to be broken to get any upside going. If they weaken further from here, an air pocket is indicated down to where the next set of 2 and 5 day cycle channel lines converge around 1280.

Here’s a look at the Spoos 30 minute bar chart (time stamp in upper right corner).

S&P Futures Intraday Chart- Click to enlarge

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 Wall Street Examiner terms of use.

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

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Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish LiquidityTrader.com, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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  2 comments for “Mixmaster Market

  1. January 18, 2012 at 10:03 am

    This quick U turn now resulted in a 2 day cycle projection of 1300, which they just tagged. Oh, the suspense.

  2. January 18, 2012 at 10:29 am

    SPX 2 day cycle projection now 1306.

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