Last week i wrote,
The 20-week low is still ahead of us, due end of November, as i mentioned in my last post. If the above mentioned negatives play out, we should see a severe decline starting next week. Where the decline stops, will determine the next phase of the bull or bear market, as the case maybe. If SPX 1030 cracks, then that is all she wrote for this mini-bull run....
Well, this whole Dubai news causing this worldwide selloff is a joke. When did Dubai become the economic center of the world? Since the bulls pushed the envelope to the far end of the 20 week cycle, there was little time left for an orderly decline to occur. Hence we are seeing this ugly 1-day mini-crash type of event occuring as we speak in the S&P futures. Given the nose bleed momentum, it's unlikely any bottom will occur on friday. The bottom should likely come on Monday, Nov 30, which should coincide with the 20 week lows.
Now if this 20 week lows happen to be a trend turning event, then we should see the SPX 1030 swing lows taken out, like a hot knife going thru butter. If not, this will have bullish implications. An important cycle low like the 20-week, occuring above the prior swing low and mainting the existing bullish trend structure, can only be bullish. I will reserve my opinion here until next week, to see where the 20 week cycle bottoms, before calling this an important top.