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Tuesday, February 14, 2012

Elliott Wave Update ~ 14 February 2012

The apparent falling wedge this afternoon seems to have marked wave [4] low of v of (c) of [y] of 2.

Wave [4] would be a combination corrective as labeled below.
In simpler terms, it could be labeled as such below:
On the hourly Wilshire, the last few days looks like a contracting triangle. Continuation-type inverted H&S target is 14,400 or so.
My overriding thought process is that the DJIA seems to want to challenge 13000.  Perhaps the Nasdaq Composite will challenge 3000. These are public-grabbing type numbers.  The wave count still accommodates this possibility without the Wilshire5000 breaking above 2011 highs.  But again, thats largely a moot point at this stage, yet it is still a major non-confirmation in progress.

Still, the Wilshire is a full 290 points from its 2011 high and that counts for something. The Transports are well below their all-time high by 340 points. Thats a serious non-confirmation at the moment which is bearish under DOW theory if they cannot confirm the Industrials move higher. Bears need patience. As they say, topping is a process and I believe we are topping.

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