Thursday, August 7, 2008
August 6, 2008; Rally Coming
Above is the 3 minute chart of the S&P and it shows a 3 wave drop labeled a-b-c, which means the fall this morning was a correction. To support that, the rally after that was in 5 waves, see chart labeling i-ii-iii-iv-v. Following that is a choppy decline that is clearly a correction which I circled on the chart. So it appears a rally is coming. And with the 3 wave drop from yesterday's high, it most likely means that the rally will break through that high and make a new one.