Wednesday, March 17, 2010

First Sign Of A Top




Well we haven't had too much success with nailing this top so far, but signs are beginning to show up. The top 2 min chart shows a fairly clear 5 wave decline. The hourly chart below shows waning momentum and a potentially complete wave count. I wouldn't rule out another new high just yet, but at least we should get a pullback to the January high. The hourly chart shows my best guess at the unfolding wave count. Wave (C) should stop short of testing the February low, while wave (D) up should retest the January high. Thereafter wave (E) will complete the wave [B] triangle.

One of the biggest reasons to believe that the entirely rally from the February 5 low is not an impulse wave is that even within the light volume there was no expansion of volume where wave 3 should be.

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