Donald, David:
The charts certainly look terrible. If one wants to clutch
at straws, one can argue that SPX closed above important
support levels, but it is still dangerously close.
My question to you is whether you really believe that, if the SPX
breaks through those levels on Monday/Tuesday and reach your
minimum target of 1030, it will stop before 960? If it closes below
the 1050 area, it will have broken all sorts of support lines,
long-term trendlines, that I would consider that a clear
crash signal. Is it possible that your 5 of 1 wave is not as
extended as you predict? I could see a subwave count that has
already completed 2, 3, 4 and 5 on Friday. We could then interpret
that as a triple bottom. A good foundation for a rally.
I would still argue that Clinton, expiration week should be
positive factors next week and that the Asian situation may
not be such a heavy weight for the moment (well, the weekend is
young and a lot can happen by Monday).
Cheers,
Phil |
