Thursday, July 31, 2008
July 31, 2008; Dow Futures Dropping as Planned
Dow futures are falling nicely this morning as I called for yesterday. The new is talking about the jobs and GDP number for the reason, but I, nor other ellioticans, knew what those numbers would be yesterday but we knew the market would fall. Once again proof that news doesn't move the markets, crowd sentiment and psychology makes the news.
I'm looking for a top to be in-in the markets and a massive multi-week selloff to possibly be underway right now! We'll see. The risk is at the highs of yesterday, so the risk/reward is outstanding.
The above chart is the Dow emini futures and it shows the decline that started shortly after I called for it yesterday after I called it and making a slight new high. Also notice the big bearish engulfing candlestick (circled). If that candle closes like that, it should signal that some type of top is in, if not THE top.