Monday, August 31, 2009

Pullback Likely Unfinished

Today's correction in the major indexes looks incomplete. It looks as though one more down move is needed to complete 5 waves down. Many ellioticians will be saying it is the beginning of a new downtrend, but most likely it is wave c of a flat correction. The only question is whether the next move down will complete wave c or whether it just completes wave i of c. There is no way to know at the moment. The least probable, though possible, interpretation is that the entire rally has topped and we are beginning a new downtrend. Tomorrow's action may clarify.

1 comment:

dave said...

The reason why i wrote big down day Weds & Thurs is on an hourly chart counting from Fri spike high it certainly looks like (1, abc2) not 1,2,3,4.

More & more i realize the importance in being able to spot abc moves up or down - hourly, daily or weekly. 1) You're getting in before the choice 3rd wave; 2) You're not getting shaken out by the c of 2 or, more importantly, avoiding or missing the opportunity that c of 2 presents.