Monday May 21, 2012
This weekend we focused on charts of the market internals. Here is an observation on the apparent bounce we may experience today.
We do not claim to be Elliott Wave experts here but looks to me like this could be the bottom of a 3rd wave. The relentless day after day delcine during may has the character of a third wave. This could be setting up a fourth wave sideways corrective move. And that might lead to a final fifth. We noted this weekend that the Summation Index looked to be two to three weeks from a low if the same pattern form last August holds again.
Whatever count is correct, the hourly chart is exhausted. This argues for some sort of relief rally. If this analysis is correct it should be weak and on low volume.
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