The S&P Index continued yesterday the decline, as wave 3 (blue) is developing, as stated in early november: (
The price action and the slope of the current swing down is typical for a wave 3, that usually is the longest. Having in mind that wave 1 (blue) that has formed during may-octomber period traveled about 280 points, I expect wave 3 (blue) to be at least this length, this meaning that the price should break below early octomber lows, in 1,090 area.
The price large consolidation between 1,220 and 1,270 (in the first half of november) formed the second wave (wave [ii]) of the larger degree wave 3 (blue). Therefore, we should now see the most clear and sharp fall of the whole longer term down move.
Until further signs of reversal (correction) nothing can stop the price to fall (technically speaking) and the first srong support area is given by previous lows, in 1,090 area.
No comments:
Post a Comment