Wednesday, November 16, 2011

Heading Down Toward Wave e Low

The triangle is in its last stages as the markets are moving down in wave e.  The low of the triangle consolidation that has been going on since the end of October is near.  The low should be seen by early tomorrow morning.  Afterward the rally toward the May highs should resume.

The alternative is that this is a b wave triangle.  If this is the case, then after a low tomorrow morning, a brief rally should follow that does not take out today's high.  Thereafter, markets should fall dramatically for two or three days in wave c down.  Then, the rally will resume.  Although it would be frustrating for this outcome to occur, the overall view is still bullish because of the clear and unmistakable triangle.

No comments: