Stock Market Can Just Got its Last Kick
Stock-Markets / Stock Markets 2012 Jan 04, 2012 - 01:59 AM GMTDear friends,
Remember this:
· Zigzags are very common.
· Double zigzags are less common.
· Triple zigzags are rare.
You may recall on December 7 that I wrote that the markets had an extremely left translated cycle coming from the Master Cycle low on November 25. That was at the completion of the first zigzag. The second zigzag topped on December 27, at half a Trading Cycle. Today's zigzag made its top near a half Primary Cycle. Although these types were an important cycle turn dates.
The bottom line is that the triple zigzag formation was buying time, but the gain was minimal over a month’s time.
You may also notice a reversal pattern at cycle top resistance in the hourly chart. This reversal pattern is an excellent sell signal with further confirmation at trendline resistance at 1270.00 and an additional confirmation at the cluster of support/resistance lines at 1235.40 through 1243.82.
I may be beginning to sound like a broken record with my crash warnings, but now that the PPT is finished kicking the can into the new year investors will be faced with a new reality.
Good luck and good trading!
Regards,
Tony
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Disclaimer: The content in this article is written for educational and informational purposes only. There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.
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Comments
Chairman
04 Jan 12, 10:19 |
Wishful thinking
I wouldn't pay much attention to this permabears' Elliot wave counts. |