US markets have a reversal day with good volume so far but the VIX did not produce the 13 yet. We should make a little dive tomorrow again but not get to todays lows anymore and start rising from that levels thereafter. That likely will lead to some short covering into Friday even early next week. This will be a wave 4 type upside correction. Nevertheless, we need to come down again unless we can turn the whole week into a reversal week (unlikely). The time frame to get to the final low remains at around early November, which should mark bigger wave 3's low and might be a double low pattern or slightly lower (930 SPX) before a bigger wave 4 correction towards year end will bring markets back to 1100/50 SPX and finally start wave 5 down to 770/800 SPX end of Q1 2009.Above, the Australian Dollar with 3 months wiping out the gains of 5 years, that is how most emerging market currencies look like just to give an idea how powerful structural moves we have on this planet right now.
No comments:
Post a Comment