Tuesday, June 16, 2009

5 Waves Down In The Qs

The Qs are showing a clear 5 wave impulsive decline since the top last Thursday. The alternative is that the current wave down on the hourly chart is wave iii of 3, but most likely a small rally is imminent which may last for 1 to 2 days. If the current decline is wave 1 of c, then the low projects to around 32.75 at 2.618 x wave 1, which is a common relationship for impulse waves. That would put the low just below the May low. We will see how it unfolds, but today's development indicates that lower prices will be seen in the coming days.

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