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Wednesday, July 1, 2009

NASDAQ Squiggle Chart

Looking at the SPX 1 minute chart, I wasn't going to chart the squiggles today because there was too much muck. However looking at the NASDAQ provided a bit more clarity perhaps.

I have the move down from early peak as one 5 wave move down to a low. That would imply a retrace wave back up some Fib percentage. And then, this time, since its a 5 wave move down (at least I think it is), we should be getting more 5 wave moves down after a retrace.

Give me credit, I did not chart the squiggles yesterday as a 5 wave move down. I thought they looked like zigzags which of course is corrective in nature and would allow a new high price today to develop. And it indeed did. I didn't think a new price high today would happen, but the fact that the market peaked today was not so much a surprise to me because the bearish move yesterday didn't look like a straight-up 5 wave structure.

However today's move down does look like a straight up 5 wave structure. So this time a retrace back up to some Fib percentage should hold and another move down would be coming.
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