Friday, August 1, 2008

August 1, 2008; Moving as Planned

Jobs number came out mixed, but it doesn't really matter I guess when crowd sentiment has turned down in a wave 3 of (3). They will find a reason to sell, like they are today so far. Yesterday's highs remained intact and pressure remains down with a proposed wave 3 of (3) down underway which will be a massive multi-week selloff of 2000-4000 Dow points!

Breadth is very weak so far this morning with NYSE decliners outnumbering advancers 2:1 and almost 70% of total volume being to the downside. I'd like to see that progress to 3:1 and 90% as the day moves along so it will fit with a large wave 3.

Look for further weakness with brief consolidation periods. Any rally will be met with fierce resistance and should fail to make any significant gains, if any, if this is in fact the big daddy wave 3 of (3).

The USD/CHF is showing some weakness, dropping below 1.0460 before rebounding. I'm still looking for the pair to fall at least 100 pips to the 1.0355 area.

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