STOCK MARKETS UPDATE 05-12-12

I commence with my gratitude to The Creator

ARE MARKETS GOING TO REVERSE OR START A PANIC SELLING?

Market Forecast 05-12-12

Markets have been trapped within the channel, without the successful effort to break through the support levels at 2,900 for COMPAQ NASDAQ Composite. and We have arrived at the time cycle for change or reversal on 05/14. Friday close, thus, would be swing low for next rally until the next time cycle.

As a matter of fact, Monday could be very strong long green up bar.
However, what I want to give you a 'heads up' for the technical pattern being made on the hourly chart. Markets have been trapped from 05/08 in this shape. This is a bearish and continuation pattern of Flag or Pennant, Outcome of this pattern, would result into the another leg down. But first, markets must show their commitment to downward, with a gap, a breakaway from this trapped market's move. That would mean a big red down bar, then.

As time cycles do two things, reverse the preceding trend or help expedite the trend. This could even create an exhaustion gap.

NASDAQ: Watch for time cycle of 05/17-18 and up targets for the price levels of 3002, 3024, 3031, 3044 to offer the time/price squaring, and down targets are already published in the previous most recent posts.

Stock Markets Forecast Update 05-09-12

I commence with my gratitude to The Creator

Stock Markets are falling hard in the hours after the opening bells at Wall Street, only to recover bulk of losses back before the close of the day. Based upon my years around the stock markets, this kind of markets' behavior, is indicative of Markets attempt to finding their next direction. No matter what direction markets decide to go, we are going to see lot more of the similar volatility in coming next months.

However, there are some interesting patterns being developed within three markets indices, namely Russell 2000, AMEX Composite Index, and NYSE Composite Index. All of them, are unfolding a H&S Pattern.

Upon successful completion of H&S pattern of Russell-2000, it shall fall and the support are likely to occur at these levels of $76.66, $74.50, $73.40.

Please remember the time cycle as stated in my previous post, are important to watch within next 3 weeks. Important dates are 05/14***, 05/17-18, 05/28 and then a BIG DAY shall be between June 04-06, and JUNE 18. Markets shall find turns on or about said dates.

Stock Markets Time Cycles Forecast 5-8-12

I commence with my gratitude to The Creator

IS MARKET HEADING FOR BIGGER CORRECTION THAN WHAT IS NORMALLY EXPECTED?

Stock Markets today, tumbled as much as 1.8% and then recovered some of the losses by the close of the day. Almost all of the leader stocks lost ground Tuesday At higher than usual volume, but many finished  above their session lows, mirroring the main indexes' action. In fact, NASDAQ volume was the record high for this year
Today's Markets reaction is indicative of underlying shift of markets' pressure points. If that is true and is validated by continuation of the falling prices and certain support levels as indicated by the charts attached., are violated, then markets bull trend is in serious trouble for next intermediate term.

My time cycle tool, is giving me May 14th and May 17th as turning points. Markets need to find support at these time cycles and with the corresponding price levels for SPY, of $133.45, $131, and last one at $129, as shown on the attached chart.

If stock markets only find some temporary support and consolidates at these time cycles and do not sustain the support, then Stock Markets are heading for serious decline and even shall suffer serious capitulation.
It means that time cycle top (by pulling the market higher) expected in October 2012, is being inverted. Stock Markets are being pulled downward until then and instead, shall be market bottom around said time of October 2012. Which will result in market retesting the low of October of last year.

EURO/DOLLAR Forecast 5-8-12

EUR Forecast 05-08-12

I commence with my gratitude to The Creator.

EUR is setting up for big decline from hereon.

Looking at the daily charts, it has successfully completed and tested the support at the neckline of wide Head and Shoulder pattern which started off from February 1st, 2012. Based upon the H&S successful manifestation of the decline, very first target is @ 1.2800, and 1.27345, 1.2555. Based upon the alternative price projection, I am getting first support at 1.2913, 1.28471, 1.26721.

EUR Forecast 05-08-12

However, 3-days chart portends a much bigger decline. Thus, giving me first support target at 1.2528, followed by retest of June 2010 lows. Targets triggered by weekly Chart, are 1.1580, 1.1157, and finally at par with US Dollar.

Stock Market Forecast 5-7-12

Market Forecast 05-07-12

I commence with my gratitude to The Creator

On May 2, 2012 early morning, right after when DJI had logged in the highest prices in the 4 years history of the stock markets, I forewarned you and said, " I am expecting another correction soon, even as soon as 05/02".  I supported my argument and said that, "  Dow Jones Industrials have claimed the highest price in the 4 years on May 01. However, other indices showed weakness and thus closed much lower than price set on 04/02 highs. For example S&P-500 even made an inverted hammer, which after confirmation could result into more selling thereafter."

I even posted this attached chart, showing the down target of 1,369 for SPX, which has already been achieved..

Stock markets experienced a gap, on Monday. This gap was NOT an ordinary gap. It was a break away gap.  It is a Precursor of a new trend, which is downward. Breakaway gap candlestick was a Marubuzu, which reflects that markets is really weak and sellers have taken over the markets. By looking at the NASDAQ chart, it shows the underlying weakness of the stock markets It is the index,which lead the recent 3 1/2 months rally starting from mid-December 2011. First support for NASDAQ lies at 2,875 area, then below that support is at 2,812, and 2,760