Monday, January 26, 2009
CAT has entered wave 5 down and we need at least 3 weaker weeks to get into the zone in an overall time frame of 6 weeks. I start to wonder as Martin Armstrong's model suggests Mar 19th as the crucial date which fits into the equation might mark the lows of wave 5 of bigger 3. CAT has to drop below 30 and rather below 25 to complete this decline. We still might see a short term bounce from the 31/2 support area short term but selling rallies is the right thing to do here especially around the 35/6 gap area. As the VIX index is hinting clearly to my assumption I made weeks ago we need to go below the 40 once again to complete the down count sequence as well.
Posted by getagrip at 12:50 PM