Possible Upside Target

Here's a likely short term target (1295) if traders find reason to be optimistic following this week's FOMC meeting:

Another Look

Following the pre-open decline in the futures market, the S&P slowly ground higher throughout the day...closing right on the lower boundary of the primary down channel...and right in the target area specified yesterday.  This week's FOMC meeting is expected to be the next influencer of significance...

Critical Level for the Dow Industrials

I've seen the 11,600 level identified as an important level of support.  I think we could breach that level slightly to the 11,400 level and still be ok, but 11,400 is a crucial hold...

Albino Black Swan

The following possible scenario is quoted from the urbansurvival.com website:

"Albino Black Swan Event, more rare by an order of magnitude than the October 1987 asset devolution. This Mutant White Black Swan will come only once every 250 years.

Both the recent devastating earthquake and the coming asset devolution macroeconomicquake are analogous brother natural events occurring in a nonlinear universe. If enough information and data were known about the linear building of stress forces on the tectonic plates, an exact and patterned prediction could occur regarding the exact timing of earthquakes. This information will be available for future generations. Unlike the information needed to predict the timing of earthquakes, the information needed to predict the historical collapse of asset prices is now available. 

The summation of the macroeconomy's internal parameters - cumulative debt, asset supply, asset valuation, and job supply are integrated into the time course of its derivative asset valuations and follow very precise, very empirical, easily observable quantitative fractal time patterns, This patterns were described in 2005 in the Main Page of the Economic Fractalist and were used to exactly and prospectively predict the 11 October 2007 Wilshire nominal peak valuation.

The Wilshire's 1982 nodal lows of 99 months forms a base fractal from 12 August 1982 to October 11, 1990 whose second fractal has a maximum of one and 1/2 month for second fractal 2,5x completion. The second fractal must end in April 2011. Similarly on a much lower fractal time scale, the May 25 2010 67/134 day:: x/2x fractal with the 2x ending on 9 March (the 134th day) vice 8 March 2011 with a nonlinear gap lower on 10 March 2011 - has only a maximum of 32 trading days left for completion. 

While the timing of the ideal conclusion of the 1982's 99 month base fractal's second fractal and the 25 May 2010 67 day's (from 25 May 2010 to 27 August 2010) second fractal are exactly the same; asset valuation decay may proceed in a faster time course than the expected ideal reversal low on 25 April 2011.

By the new science of saturation macroeconomics, the ideal fractal decay low is is 9/21 of 23/18/14 days x/2.5x/2x/1.5x or on 25 April 2011.

Observe the exquisitely perfect 6/15/12//9 day :: x/2.5x/2x/1.5x nodal low sequence that took the Wilshire 6 March 2009 first fractal 88 day nodal low to low base to the 25 May 2010 second fractal low ending on the 221st day of a 88/221 day first and second fractal (with 2 of the 221 days half trading days.) The 6 May 2010 flash crash was a third fractal part of a perfect 6/15/12/9 day x/2.5x/2x/1,5x day sequence ending on 25 may 2010.

The probability of this patterned behavior occurring by chance approaches zero ... what the hell, let's agree to call it zero.

What will be the exact fractal decay sequence to the low? Other than confirming a new patterned science for economics and macroeconomics, equivalent to physics or chemistry, it doesn't matter....

Expect the unexpected: expect the Albino Black Swan.  Does it take out the Dow low of Mar/Apr of 2009?

"Yes, it must."

Oh...hmmm...nayvermind...!

Yesterday I identified a likely support level based on the confluence of the present downtrend support level and existing support in the SPX 1270/72 area.  With the panic selling on the Nikkei, US markets are likewise selling off significantly and have 'jumped' through this important support level.