"Now we're gonna separate the men from the boys"
As the title implies, things are about to get difficult for someone. It's either the bulls who are SOLD on this move and believe that it marks THE bottom, or it's going to be the bears who are convinced that this move is just another 5 day wonder.
The first battle zone....740. If the market somehow becomes weak enough to reach this level, the bulls will buy, buy, buy as Jim Cramer the moron says. The bears, on the other hand will be trying like the ferocious beasts they are...uh...were...to drive the market down through that level like a skydiver who forgot to put on his parachute. Who wins this battle, if it comes, will tell us a lot.
A reversal off of 740 that sticks will help form an inverse head & shoulders pattern that would have its next stop all the way up at 840-875 depending on how picky you want to get.
A break down through 740 and the elusive 5th elliott wave many expect may be under way.
I'm hesitant to think the market will give us such a beautiful 5th wave decline to mark this INTERMEDIATE term bottom. I'd love it if it did, I really would. It would make my life a lot easier. But, it would be the closest thing to "setting it up on a tee" that one could possibly see at this degree of a decline. In other words, it would just be too easy.
A fully developed 5th wave would give us #1 a perfect Elliott pattern #2 a potential filling of the projection of the running triangle and #3 a possible fibonacci retracement number at about 602. Plus it would scare the "you know what" out of everyone just for good measure. It sounds like my Christmas list!
The most likely scenario is for 740 to hold and the rally to continue. This would delight the bulls and lead them down the road to their ultimate and final demise. It would also leave the bears to kick the ground and wonder what might have been (since a 56% decline just isn't punishment enough!).
Scenario "most likely" #2 would be for 740 to be pierced getting the bears all frothy and having many getting a #5 tattooed on them somewhere we don't need to know. And wouldn't you know it, no sooner than the ink dries, that 5th wave sucker truncates and fails to deliver the goods. (truncate means that it doesn't go below the 4th wave low at 666 before bottoming) This would probably frustrate the greatest number of people and would my favored outcome if the dang market internals weren't so strong.
So there you have it. This really is about to get very interesting. I can hardly wait for tomorrow!
The first battle zone....740. If the market somehow becomes weak enough to reach this level, the bulls will buy, buy, buy as Jim Cramer the moron says. The bears, on the other hand will be trying like the ferocious beasts they are...uh...were...to drive the market down through that level like a skydiver who forgot to put on his parachute. Who wins this battle, if it comes, will tell us a lot.
A reversal off of 740 that sticks will help form an inverse head & shoulders pattern that would have its next stop all the way up at 840-875 depending on how picky you want to get.
A break down through 740 and the elusive 5th elliott wave many expect may be under way.
I'm hesitant to think the market will give us such a beautiful 5th wave decline to mark this INTERMEDIATE term bottom. I'd love it if it did, I really would. It would make my life a lot easier. But, it would be the closest thing to "setting it up on a tee" that one could possibly see at this degree of a decline. In other words, it would just be too easy.
A fully developed 5th wave would give us #1 a perfect Elliott pattern #2 a potential filling of the projection of the running triangle and #3 a possible fibonacci retracement number at about 602. Plus it would scare the "you know what" out of everyone just for good measure. It sounds like my Christmas list!
The most likely scenario is for 740 to hold and the rally to continue. This would delight the bulls and lead them down the road to their ultimate and final demise. It would also leave the bears to kick the ground and wonder what might have been (since a 56% decline just isn't punishment enough!).
Scenario "most likely" #2 would be for 740 to be pierced getting the bears all frothy and having many getting a #5 tattooed on them somewhere we don't need to know. And wouldn't you know it, no sooner than the ink dries, that 5th wave sucker truncates and fails to deliver the goods. (truncate means that it doesn't go below the 4th wave low at 666 before bottoming) This would probably frustrate the greatest number of people and would my favored outcome if the dang market internals weren't so strong.
So there you have it. This really is about to get very interesting. I can hardly wait for tomorrow!
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