Friday, July 31, 2009
The XU100 has reached the target zone around 40-42000 and has a potential left up to 43000. A severe correction is due starting in 1-3 weeks. The downside potential is big as at least 33000 is likely. In pure wave terms we should see a wave 4 down starting earliest next week. We are in week 13 Combo count which we get now in many indices like the NDX at 12 this week. We have reached exhaustion level in a fabricated rally without any fundamental backing. Get out of longs and start building up short positions. Emerging markets are at a higher risk as they have performed far better.
Posted by getagrip at 5:57 AM