Wednesday, July 23, 2008

July 23, 2008 8:40 PST; Preferred Counting Losing Stature

Here is a close up (15min S&P chart) showing the preferred count which is losing stature quickly. It shows a clear 5 wave rally complete, or almost complete, as wave c of a “flat correction”. The impending decline will be wave v within wave 1 which will take the indices to new lows. Judging by the breadth and strength of the rally the past week and the strength I see today, this wave count looks more and more unlikely unless a big selloff occurs by the end of the day on with big underlying weakness accompanying it.

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