“Those who have knowledge don’t predict. Those who predict don’t have knowledge.”
Lao Tzu, Chinese philosopher, 6th century BC
PAYPAL
Friday 5 October 2012
5 Oct 2012
Most index posting an end of day reversal shooting star. Prices moved higher in the morning and even surpassed the previous high by the Dow Jones. It still suggest a C wave down to come. Most likely after that a presidential rally.
c wave would be to about what level? I now have many negative divergences in place now that the dow took high out. Its just they take so darn long to play out. Is the IWM a bearish triangle or bear pennant setting up. Its seems to be the weakest, when it should be leading.
IWM is weak. Looking at the way its patterns are forming it could confirm what we have been saying about this move as "Corrective". The weekly Stochastics are downtrending so I expect that there should be a down trend still to come and might even put in a divergence on a daily Stochastic chart. This would form an ABC EW pattern and continue to a higher high. Now for the Dow all it had to do was break a new high and we have met minimum, but since none of the others have broken it. I believe whats to happen would be for the down to make some sort of expanded flat or running flat while the indexes that didnt make a new high would make a zigzag patter for the downward move before it rallies to new highs.
c wave would be to about what level? I now have many negative divergences in place now that the dow took high out. Its just they take so darn long to play out. Is the IWM a bearish triangle or bear pennant setting up. Its seems to be the weakest, when it should be leading.
ReplyDeleteIWM is weak. Looking at the way its patterns are forming it could confirm what we have been saying about this move as "Corrective". The weekly Stochastics are downtrending so I expect that there should be a down trend still to come and might even put in a divergence on a daily Stochastic chart. This would form an ABC EW pattern and continue to a higher high. Now for the Dow all it had to do was break a new high and we have met minimum, but since none of the others have broken it. I believe whats to happen would be for the down to make some sort of expanded flat or running flat while the indexes that didnt make a new high would make a zigzag patter for the downward move before it rallies to new highs.
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