A Small T Suggests More Rally Next Week

If you haven't been following Terry Laundry's T Theory sites, I suggest you check them out. What I like about his work is that it is completely unique and thus allows for independent corroboration of other methods. According to Mr. Laundry a small T formed this week that projects 5 more trading days of rally. Go to T Theory Calculations to see what he has to say.

The only thing I might add is that this small T doesn't necessarily mean higher rally highs next week. After following T Theory for some time I have seen on more than one occassion that a samll T projects a lower high. He may disagree, but what we may see next week is 1) a minor new high on Tuesday followed by a selloff into midday Wednesday and a rally into Friday with a lower high than Tuesday. This is all speculation, of course, but the elliott wave pattern is clearly corrective so whether the market diddles around another week or not will not change the next move except to alter the final targets for the correction. One possibility that has come to the forefront in my thinking this week is that wave (B) could turn out to be a triangle. This would allow a lower high with wave [e] of the triangle terminating at the end of the small T. The outcome of this pattern would be LOWER correction targets. Another point regarding this small T is that it may be supportive of the action in commodities next week.

We have now consumed almost 12% of the year with little to show for it, but an important buying opportunity should be near at hand. This could well be the last significant intermediate term buying opportunity for many months if not years to come.