Below some technical aspects matching my assumptions - we had a wild above or below Bollinger session yesterday which is a rare event and we reached crucial levels in such a move which usually marks turning points. The NDX closed at Bollinger with a daily 11 count in a weekly 13 count hence we need at least 1 higher close today or Monday. Considering this all happens while Mercury in heliocentric perspective crosses through Sagittarius ( usually very strong moves in Currencies and precious metals) which will end on Tuesday and a stationary Neptun on the 6th which is rather a sign for the crowd making bad choices the correction will start next week starting very likely around Tuesday give or take 1 or 2 days. weekly 9 counts are usually a strong indication for corrective turns as we are in week 9 counts this week. Overall we will have a corrective move now which should be in the 10% plus range depending on the market it will differ followed by a final upleg into early next year. The Dollar is about to turn as well next week which consequently will turn also the precious metals short term.
As banksters will play their hands til year end anyway to mark another record year of undeserved bonus pays sponsored by Mainstreet.
http://danericselliottwaves.blogspot.com/
Thursday, November 4, 2010
Elliott Wave Update ~ 4 November [Update: 8:52PM]
[Update 8:52PM: I was expecting this break under the long term trendline. If its an ABC pattern, then it needs to turn ASAP.]
[Update 7PM: An interesting weekly Wilshire chart. I think the song remains the same here somewhat. And Wall Street will rip it the other way once they have all the bagholders lined up. Do we really think things have changed?]
[Update 8:17PM: BPSPX also paints an interesting chart pattern.
Sentiment Trader http://www.sentimentrader.com/ finally had its short term readings go extreme and its long term skyrocketed to 41%. The April peak was a bit higher at I think at 47%. Anything over 35% is something to take heed. Over 40 even more so.
So you see it is not without reason why I remain bearish longer term. When viewing this data in the terms of a long-term bear market and particularly a Primary wave [2] wave that has gone on for 20 months, one has to remain vigilant. It is from these types of extreme readings that the May 6th Flash Crash occurred.
Their Composite Model remains quite elevated and particularly the 21 day MA
[Update 7:10PM The rip through the upper Bollinger Band was very violent. Looking back a recent history I can find a few other places such a rip occurred. Will it have the same outcome? I cannot say it will, but I cannot help but notice it either.]
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