Wednesday, October 6, 2010
Elliot Wave works the best way looking back if your not really into it. we had a clear 5 wave up count to 11250 I thought - the price pattern do confirm - and the flash crash was a perfect impulsive wave down was my assumption. Today I think we can see an adjusted wave count as we have entered wave 5 up after an unusual long wave 4 correction. We are challenging the 200 week MA which turned markets down around the top and what you can not see on this chart the death cross has be reversed back into a golden cross - the funny thing about those crosses is around the occurrence you happen to have quite often a counter-trend move. around the 8th Oct markets should turn down and make a correction of at least 5 percent down as with a plus close today the Dow should count an 11 on TDM COMBO. That would leave us 1-2 higher closes from an interim top after the NDX made that count already yesterday and the comp needs 1 higher close. after the correction we can expect a retest of the 11250 levels but that we discuss as the action unfolds for now we need 2 higher closes for the Dow including today hence we might test the 11000 within 48h. Targets to the downside are at least 10500 and 10200 very likely. The insane market manipulation by the FED and their puppet masters with big help from DC makes this a harder game as they did also back in 2007 extending the inevitable crash with plenty PPT and FED manipulation.
Posted by getagrip at 7:08 AM