Kenison Counting Numbers Project Stock Market Top

First, a little history. In a post on February 5, 2007, I noted that Kenison Counting Numbers were projecting that a major top for the U. S. stock market was imminent.

By applying the counting numbers sequence to the monthly charts, an important top reversal was projected to occur in a three month reversal zone centered on the month of January 2007. By next applying the Kenison Counting Numbers sequence to the weekly charts, a top reversal was projected to occur in the three week reversal zone centered on the week of February 12, 2007.

By applying the counting numbers sequence to the S&P daily and 60 minute bar charts, three day and three hour reversal zones were projected forward resulting in a confirmed daily reversal top on February 22, 2007.

Following that top, a massive stock market sell-off which included the highest volume down day in history confirmed the Kenison Counting Numbers timing that a major top reversal would occur in reversal zones projected months beforehand on monthly, weekly, daily and intra-day price charts.

The June S&P sell-off reached a bottom on March 14, 2007. Kenison Counting Numbers rules generated a reverse direction buy signal the very next trading day when the market rallied above the top of the March 14 daily range. The market then traded up into a three day reversal zone centered on March 23, 2007. However, by failing to confirm a reversal top at that point, the market generated a bullish continuation signal instead.

In a post on March 20, 2007, I noted that Kenison Counting Numbers projected that the next major monthly reversal for the U. S. stock market would occur in a three month reversal zone centered on the month of June 2007. I also indicated at that time that the next major weekly reversal would occur in a three week reversal zone centered on the week of May 28, 2007.

So, where are we now?

The Dow Jones Industrials and June S&P have now both rallied above the April highs into the three month reversal zone centered on June 2007. They have also rallied up into the three week reversal zone centered on the week of May 28, 2007. Consequently, Kenison Counting Numbers are now indicating that the stock market has committed itself to a major top being made in this time frame.

Lastly, by applying the counting numbers sequence to the daily and 60 minute intra-day charts, we can see that projected three day and three hour reversal zones are also now indicating that the top is at hand. Stay tuned for further updates.

Copyright (c) 2007 Bruce Kenison. All Rights Reserved.
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Bruce Kenison founded a publishing and seminar production company in 1976 that recently published the 5th Edition of Bruce Kenison's Market Timing Home Study Course. He is also the founder of several market timing advisory services employing the Kenison Counting Numbers precision market timing method and is the editor of Bruce Kenison's Market Timing Signals ezine and newsletter available free to investors and hedgers. For a free subscription to the ezine or newsletter and information on products and services, send a blank e-mail with "Subscribe" in the subject line to: brucekenison1@**********