Friday, February 22, 2008
If the VLE closes lower today, a new short signal will likely be generated. One note of caution though. The signal is coming at the apparent completion of a triangle. From Elliott Wave Theory we know that this means that the forthcoming decline is probably the end of the impulse wave down from the 10/31/07 high. Therefore, one should not expect the decline to be persistent. If there are multiple gaps down on very increasing volume, it is possible that this is a 3rd wave and the decline will be persistent. The point being that any significant reversal on volume should be respected.
Posted by R. Craig Pritchard at 7:30 AM