(1) New ES targets, and (2) where should the SPX be now?

(1) I have revised my ES targets:

UPside breakout: 1044, adding 1053 second target
Downside Breakout: 1016, 1010, adding 1006 third target

(2) Regarding the SPX, IF we assume that we remain in an uptrend, and that uptrend is valid, the daily charts suggest that a "normal acceleration uptrend" should have the SPX at 998 on Aug. 26, not at 1028. The "normal" uptrend would have SPX at 1005 on Friday 8/28 and 1027 on 9/4. The rapid acceleration suggests that a pullback should occur, even WITHOUT a change to downtrend. The fact that the SPX accelerated this rapidly suggests a correction, however because the trend went up fast, the "correction" could result in a rapid decline, changing the "correction" to a "reversal".

Longer term, the scenario calls for a continued up and down until Q2 in 2010, followed by a dowtrend reversal that slowly declines for the rest of 2010.

Just some thoughts....



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