SPX MidasTrading Bands Update

Hello Traders,

Here is an update on the Midas Trading bands chart I first posted on July 25. (Click on the chart to open it in a new window)  Today the S&P made a lower low as did OBV.  That tells me the 2008 bear is not over yet but... the S&P is now at a level where a good rally should get started.   This rally should last for several weeks (at least) considering the election (US POTUS) draws near.   Also yesterday I heard there is a lot of money on the sidelines in cash (25% of S&P valuation) so there is fuel for a rally (once investors calm down, and there is some clarity in the financial sector that is.)  

The current S&P price is well below the OBV vs Price trendline (blue squiggly line) and that is where rallies are expected.  Also the low came in right at forecasted support.   It looks to me like a new set of trading bands may be forming.   I'm figuring the top of that octave would be the May 19th 1440 high and that the price has just bounced of the "fa" note of the new new octave.  Interesting times these are...

Rick