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Strategies & Market Trends : Longer-Term Market Trends -- Ignore unavailable to you. Want to Upgrade?

To: AllansAlias who wrote (645)	5/22/2008 12:24:11 PM
From: AllansAlias	Read Replies (1) \| Respond to of 3209

Really, a continuation of post from last night (that I am replying to)... Big moves start with little moves. We expect a significant move down from bull trap highs, so we'd like to see some confirmation in a small timeframes that the move down starts out looking impulsive (i.e., 5 waves), to signal that it would be the start of something bigger. This is not critical to our longer-term outlook, but it is reassuring as one prepares to switch to the short side. Here is a QQQQ 60min chart from a few minutes ago. If we are right, and we are starting something significant, then it would be nice to see this trace out a 5 wave move, as shown below. The three up-sloping lines lines you see are from the previous QQQQ wiggle chart (see link below). We would expect the wee 'v' down to get us to, or just beyond, the lower line of the channel containing the entire rise from the March lows -- that lower greenish line. If we were to rally here up past $49, then it is a warning to shorts that this is not something to sink your teeth into (as it would violate the Elliott rule that states that a wave 'iv' bounce should not go higher than the low of wave 'i'). Previous QQQQ wiggle chart: Message 24607526