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content.screencast.com/use...SPX112614.jpg

Time to start building the case for the start of a possible parabolic move higher. Here's the daily chart of $SPX. As you can see, the large rising wedge off the 2009 low was broken to the downside in October of this year. It did not continue to breakdown lower. Quite the contrary it broke back higher, and is now sitting back at the top of the wedge. As the saying goes, when the expected move doesn't play out, expect a rapid move in the opposite direction. Considering the this wedge was over 5 years in the making, the opposite move higher could be a doozy. The scenario I would prefer is a move back down to the 2020 area first to backtest the breakout of the Sept high. If that happens, and then we begin to move higher off it, the stage would then be set for a breakout of the wedge to the upside. If that does indeed occur, a parabolic move higher in 2015 is certainly possible.

Comments

Booboo, Degrowth Defined →Booboo, Degrowth Defined →
I just heard a whimper, is this the end ? 11/26/14
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