We are approaching Bottom #2, and I continue to anticipate a bounce after Bottom #2, and then the final low at Bottom #3. Lately, I have been showing the short term bounces on the way down using the 30min Charts.
Next, I will calculate the decline and target for Bottom #3:
I have a very specific cycle that strongly correlates with the current pattern of trading. Calculations based on that cycle indicate that C = 1.382A.
A = 1344.07 Feb, 2011 high - 1249.05 March, 2011 low = 95.02 SPX points
C = 95.02 points x 1.382 = 131.32 points
Therefore Bottom #3 is calculated to be:
1370.58 - 131.32 points = 1239.26 SPX
The following chart shows that the Financials have been leading down since February with lower lows. The glaring difference between Rifin and SPX (Yellow) clearly shows a bubble - about to pop. It is not a matter of "if" SPX will breakdown. SPX will soon catch up via a freefall with the weakness that Financials have already experienced for months. I will show the timing of the freefall next.