These are some updated charts I have been playing with. The top chart has Fibonacci based Bollinger Bands which I figured out how to program into the ThinkorSwim platform yesterday. In terms of my prediction and count, please refer to my previous post.
Take note of the impending crossover on the interest rate of the 10 year CBOE Treasury Note and the incredibly calm VIX. Unless the Vix can manage to keep moving down I would bet that we are in store for a kick up in volatility, which combined with falling interest rates on the note and a market which I believe is running on irrational exuberance, a minor correction as described in my previous posts of at least 14% of the growth from 2009 should be in order.
The Fibonacci extensions for this last wave c (green in Chart 1-2) have me a bit confused however, and it seems possible that, while the DJI may top in and around 15,333, it may test this high again in the next few weeks before finally succumbing to selling pressure, and I would argue, a pessimistic shift in social psychology altering what I like to call the "Social Mass Effect" of the markets.
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| Chart 1-1 |
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| Chart 1-2 |
-W
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