Possible Ending Diagonal In The IWM

Follow To Older Post: It looks as though the IWM is going to make one more attempt at a new rally high. This is quite common with ending diagonals and an overthrow that looks like a breakout is entirely possible, but the end result should be the same. The action in the precious metals really tells the story. It is only a matter of time before stocks follow. If this interpretation is not right, we are on the verge of a rip-roaring rally in stocks, and all asset classes for that matter.

Older:

The IWM appears to be completing wave [c] of B up in an ending diagonal triangle. Confirmation will come on a move below wave (iv). The continuing decline in the precious metals coincident with selling in stocks points to the likelihood that we have seen the top of wave B up in stocks. If this proves to be the case, the market should continue down in 3 waves until the end of the year.

As I have mentioned several times in the past, when the market closes at the high or low of the day on Thursdays, the tendency is for selling on Friday. If we close at the low of the day today, then the selling could be all the more severe tomorrow.