Ebay had a good pop right where it should have.
The bears have the ST playing field, but what about the LT?
Remember the Nothing But Net For '08 article by JPM? Were they perhaps a bit early? Ebay may be saying yes.
img221.imageshack.us
We think Ebay is in the waining stages of a very powerful correction.
A 1 up followed by an ABC-X(abc)-ABC or 2 correction is shown, the latter still in progress.
The big move up in '03/'04 was not in our opinion an impulse wave, but an impulse like c wave, which was a part of the X wave correction. This correction is known as a double running correction, and in the longterm sense is extremely bullish.
The last C of the second ABC is a C triangle, now more than likely in wave d. When wave e completes, which would appear to be early to mid '09, we should see a powerful advance in Ebay begin.
The position of Ebay within this C triangle roughly mimics where we think the NDX is as well, which is well into wave C of 2 down. No bottom prediction for the NDX, but if we are correct with our Ewaves, it should be much lower than here, like way down around 1200 or less. If Ebay holds within this triangle through this, it will confirm the shown view. It is possible the killer and maybe last leg down in the NDX is close to beginning.
TF |
