Saturday, June 26, 2010

Minor Cycle Date Approaches for U.S. Stocks

Headlines selling fear into decline tend to corrupt discipline. The mind begins to wander. What do they know that I don't?

Price continues to flirt with October 2009 support zone. This indecisiveness only augments the anxiety during recent price chop.

S&P 500 with Exchange Volume:


The decline into fear continues to be quietly faded and embraced by connected and retail money, respectively. In other words, retail money, or the small player is taking (selling) this decline hook, line, and sinker. These opposing money flows, connected in and retail out, represent a unique, multi-time frame bullish setup that is revealed in the following table.

COT Money Flow Table:


Capital continues to flee Europe towards the safety of gold and US capital markets. If fear subsides into the minor cycle date, a subtle reallocation from bonds to stocks has the potential to send stocks higher into the approaching major cycle date. Headlines selling fear ignore this potential outcome.

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