Friday, November 21, 2008
Moving as Projected; Nov 21, 2008
Looks like the market moved exactly as I projected this morning (see chart below on prior post). The more it follows my projected path, the more it strengthens my wave count.
Check out the above chart where I just copied my projected path from this morning to an updated chart after today's market action. You can see that the market followed the projected red lines fairly well.
Even though today is options expiration day and big volatility was expected, especially a rally being expected on my part, CNBC.com reports that the rally was due to Obama appointing a new Treasury Secretary. What! So the market rallies 600 points because a new Treasury Secretary has been appointed? What? I hope this is why the market rallied, becuase if so it will quickly be reversed early next week. I think options expiration combined with the market losing 13% of its value in 2 days as the reason for the rally. By rallying like it did today, it relieved a lot of the oversold pressure on the market and it allows the market to fall once again to new lows once this rally is finished. I expect this market to selloff again early next week, perhaps Monday afternoon.