Hahn strikes again...
For Thursday, November 8 in the early afternoon has triple waves hitting, especially for SPX and the DOW.
Well, here we go. The setup is astonishingly similar to the bear market rallies of January '01 and May '01. The duration and the dimension of those rallies is very similar to the current 33 day rally recovering 50% of the most recent decline.
The time wave projections hitting tomorrow are coming from three distinct waves. Just some background...We recognize an inflection point high to an inflection point low (or the reverse) as a wave. By counting the bars within the wave, we project forward by a Fibonacci ratio (1.618) to predict the natural occurrence of the next market turn.
Almost always, we get some event at the time wave projections. This time, it seems obvious that we are in a topping pattern. Therefore, we are expecting a market top or the end of the uptrending rally.
A retest of the September 21 lows is going to happen, without a doubt. We just don't know when, but it could be sooner than we think. Of significant note is the CNBC touting of the market advance in Nasdaq since the September 21 lows. (This touting was prominent last January and May, too.) The commentators always measure the percentage advance from the low, which makes it sound like a huge advance, although it's a blip on the radar, when put in context. I'll use CSCO to make my point. CSCO @ $18 is up 70% from the September low. That is a big advance! But, CSCO @ $18 is down 70% from year ago levels. Of course, the CNBC folks do not ever mention the latter performance. (By the way, CSCO would need to advance more than 400% to reach year ago levels.)
A low in late November or early December would be fulfillment of our projected “time targets” from longer term waves.
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