With the opening of the market just a few moments ago it will be interesting to see if there is, in fact, a reaction to yesterdays big leap, which I believe to be an (a) wave of intermediate degree. The (a) wave is beginning the corrective 3-wave pattern for the previous bear market cycle degree downwards (c-3) wave. The large (c-3) wave correction, by the way, was mentioned by Bob Prechter this morning on Bloomberg, and he made an interesting point. He noted that the recent hard fall of the market brings the price level back to where it was before the start of QE2.
I am currently watching what I think to be the (b) wave of what I had previously tagged as being an (a-b-c) correction, which started yesterday. (b) pulled down to $10,925 and then bumped a bit to a little over 11k. Since I believe this is a correction and the previous (a) wave from yesterday broke into five waves, I think today should be a more direct three wave breakdown, meaning that nothat the DJIA has come down, it will correct within today and then fall again, leaving effectively a single zig zag in its form as opposed to three.
Lastly I think it possible that a following C wave, if in fact I am counting correcty, which is always up for grabs and uncertain, will not be found to be as expansive as C waves usually tend to be, and that the overall downward motive force of this market / the pessismism which drives it, will prevent the c wave from really expanding in the same way that it normally would. Essentially, I do not believe, that when the c wave begins, that it will fully retrace to the top of the a correction we saw yesterday.
All the best for now. I am out again before then becomes now, which is soon.
All the Best,
Warren
No comments:
Post a Comment