And we sure got some excitement this week. When markets get so emotional we tend to get better waves and in our book one thing is clear : more downward pressure is needed before completion of the decline.
Nevertheless we still see it as a correction within an ongoing bull market for the same reasons as before. The AD summation line has not produced divergences at the recent high as we usually see on the onset of a major bear market. Furthermore bear market don't start with that much emotion. So we are sticking with our expectation for a ZigZag down.
Wave A is most likely over. We are now in a choppy wave B rally that will be difficult to forecast. We always say that the B stand for bitch. Minimum expectation is 3 waves but most likely a much more complex series of 3 waves going up and down confusing everybody before we start another leg down but this one should be smoother. A more orderly decline if such thing exist.
Maybe something similar as we have seen in the spring-summer of 2010.
Have a great week and thanks for reading.
Nevertheless we still see it as a correction within an ongoing bull market for the same reasons as before. The AD summation line has not produced divergences at the recent high as we usually see on the onset of a major bear market. Furthermore bear market don't start with that much emotion. So we are sticking with our expectation for a ZigZag down.
Wave A is most likely over. We are now in a choppy wave B rally that will be difficult to forecast. We always say that the B stand for bitch. Minimum expectation is 3 waves but most likely a much more complex series of 3 waves going up and down confusing everybody before we start another leg down but this one should be smoother. A more orderly decline if such thing exist.
Maybe something similar as we have seen in the spring-summer of 2010.
Have a great week and thanks for reading.