Custom Search

Thursday, September 23, 2010

Elliott Wave Update ~ 23 September

1148 is looking pretty good as the top of Minor 2. Certainly we have more than enough squiggles to make it so whether you count the move from 1039 low as an (a)(b)(c) or a 5 wave structure.
I like the ABC down 3-3-3-3-3  feel (leading diagonal off a major top) of the move from 1048. It smacks of a transition phase which is like a siren song and before you know it, the market is down pretty decently even though it didn't feel so. Minor 3 down doesn't have to announce its beginnings in a loud way. Preferably it hums along luring in enough suckers to make believe all is right with the world. Gaps get covered, etc.
Keeping it simple we have a 3 wave, near-perfect ABC structure from the 1010 low.  Prior to that we can either count a 5 wave leading diagonal (DJIA and NASDAQ) or using EWI's count as a double three has just finished playing out for a complex Minor 2 corrective.

Will we have a last-ditch surprise move up? I won't rule it out, but it would probably come off as an act of desperation.  But, I mean c'mon they were complaining that S&P500 was priced for 4-5% growth at SPX1200. What the heck are they saying now? Oh? They are silent? Why is that?  Is there a massive disconnect between $300 Apple and the reality of the average household balance sheet?
Loss of 1130 support is not inspiring.

Ok what is BB's exit strategy again? He might want to have one.
DJIA has retraced some 74% which is quite deep.  Need we expect any more upside for a Minor 2 interpretation?  Obeyed the bear line from the 2007 peak. The downturn of the last few days has converted this bear line into a 3-touch trendline.
blog comments powered by Disqus