From: gem-x Friday, Jun 15, 2001 4:25 PM
LG - You know, after today's action, the correction may be over...
The NASDAQ had every chance to bust below 2000 again, but held pretty well at the .500 Fib retrace of 1992 to 2048 (2019-2020), and actually closed above it with a doji, just like the Nikkei did last night. 1992 to 2048 may actually have been Wave 1 of Wave 3's Wave 1. It had all the makings of a Wave B, but because it held 2018-2020 all day long, it was actually a Wave 2. I was watching 2020 like a hawk all day, and it had all the makings of a huge drop, but it held on low volatility and low volume.
All the huge volume came in the morning when the NASDAQ popped from 1992 to 2048.
From 2048 to 2018, there was a pretty academic flat wave correction, and during Wave 2 corrections, there's very little volatility and low volume and very slow action, which we saw from 11AM to the close.
The close could have been awful, watching the Dow plummet, but it didn't. During the end of the day, 2018 held very well, and if it busted below 2018 at the end of the day, than there would be concern. Because 2018 was the beginning of Wave 1.
If you didn't get all that, I believe the correction is over, and next week may be stronger than most think.
-Ted
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