From 5120 to 1619 was one huge A-B-C corrective wave.
5120 to 3120-ish was wave A, about 2000 points down, wave B was 3120 to 4250, retracing .500 of 5120 to 3120 (typical of wave B), Wave C's 5 waves were wave 1 down, 4250 to 3550-ish (700 points) wave 2 up 3550 to a little short of 4250, wave 3 was 2.618 X the first wave to 2251 (equality to wave A), wave 4 was 2251 to 2850 (.333 retrace of 4250 to 2251, wave 3), and wave 5 was 2850 to 1619 (.618 X wave 3 + wave 1 = 1200 points to 1619). That would mean wave 1 was 1619 to 2328, and wave 2 is the current double zigzag correction we're experiencing now. I never thought we'd get the double zigzag, but it came, and now we're close to completing it.
This fifth wave down should be equal to wave 1 down in the 2nd zigzag (166 points) or .618 X wave 1 + wave 3 = 177 points, targeting 1757-1767.
But, there's always the chance of wave 5 being 1.618 X wave 1, targeting 1666, but so far it looks like 1757-1767.
If you look at how bad it was in March (scary, scary atmosphere, no visibility whatsoever, Nortel and CSCO getting sliced to 1/3 of their January highs, media articles with bears on the cover...even MAD TV had a skit on the NASDAQ in April, as did Saturday Night Live) and how it is now, it's clearly not as bad as it was in March.
CSCO has visibility, as do other companies like INTC, TXN, RFMD, PSFT etc etc...in March it was blind hell.
Shorting has become the most popular thing to do in this market, short interest is making new highs almost every day etc etc.
I know that there at tons of people who hate the low interet fixed income, and money markets, and are itching to get their money in the market.
But from an E-Wave perspective, there's a clear cut double zigzag going on on the wave 2, and we're in the last wave down.. |
