The lack of a rally today and the subsequent break of the 2002 lows in the Dow probably means that a climax selloff to complete wave(5) down is underway. While I had originally considered that the markets would work their way down in a steady fashion to fit the expected time targets, today's action pushes the expected completion date forward. In addition to today's action, another reason that I am suggesting an earlier end date is that sentiment has swung quite rapidly from very bullish to very bearish. Some sentiment indicators such as the put/call ratio still have room for more bearishness, but we must be careful here.
As I said previously, the best place to exit is probably at the end wave 3 of (5) and we may be there by the end of the week. Action in individual stocks will become divergent with some continuing to go down while the market builds a bottom and others will begin to advance.
I continue to see the Qs retesting 25.05 and DOW 6400+- as a signal of the end. I will discuss my reasoning on a future post as I am pressed for time tonight.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment