1.17.2011 -- Approaching the end game

We are still on track for a major top anytime between now and March. The chart tonight shows the upper trendline that I think will mark the extent of the top we make.

-----------------------

Key Levels

Upside - 1295, 1300, 1320

Downside - 1278, 1257, 1245, 1218, big drop after that.

-----------------------

SPX Daily;

You can see here that we are struggling to take out that resistance in the 1290-1300 range. Even if we take that out convincingly, there isn't much room before we run into that trendline around 1320.

The Stochs and MACD are both way on overbought, which basically indicates that this rally is running on fumes and borrowed time.

There is still a question of whether we need one more good sized decline and yet another rally to finish the pattern.

That is where the timing comes in that we are either topping very soon or we can stretch this out until March if there are 2 moves left in this.

We will know though. When the selling begins for cycle 3 down of Supercycle C down.. it will be obvious. The selling will come fast, furious and without mercy.

GL

CJ