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Friday, March 6, 2009

Wave 4 of (5) target

According to EW theory 4th waves should retrace approximately to the apex of the previous 4th wave of the next lower degree. So if this is a Minor wave 4 of Intermediate wave (5), it should, in theory, retrace to about the price high of the previous subwave of the next lower degree which is green Minute [iv] which was the 780 high. As you can see thats a sharp rally! I would think at least it fills the multiple open chart gaps all the way up to 753. After that, we shall see.

1 comment:

  1. That intersection of the green and blue trendlines was filled, as you predicted - good work!

    Two more down days remaining on Nasdaq Comp and SPX, I believe. Weekly close last week should hold however.

    Then there is another weekly downcount low week beginning March 16th. Seems that is coincident with a 5th wave low.