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Wednesday, August 22, 2012

Elliott Wave Update ~ 22 August 2012 [Update 5:36PM]

Update 5:36PM: The dollar has fallen back toward the pink circle that was suggested a few weeks ago. Sentiment has corrected from a high of above 80% back to just a hair under 50%. Perfect setup for a big push upwards. 

ORIGINAL POST
We've hashed out the sentiment, technicals and wave pattern. Now lets see what happens over the next 2 more days. We have a setup for a third wave down. Even if this is just a correction, we can expect at least an a-b-c "three"
Overall count using the Wilshire5000:
I am well aware of the fact that this giant wedge count could wind up looking ridiculous if this is not a true wedge. I admit its not a perfect count by all means. However technically, the wedge count does fit. We have lessening momentum with each leg up in wave (C). We have lessening volume. 

All I can say is that it feels right and makes sense.  Now all we can do is to see if prices are indeed exhausted.  If they are, then a big price collapse is coming.  Thats the fact of ending diagonal wedges. We don't make the rules on these things, the market does.
GDOW looks ripe for a decline:



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