Thursday, December 18, 2008

Brief Correction Possible, Then Rally to New Highs; Dec. 18, 2008

Above is a 15min chart of the S&P and I posted a possible wave count unfolding. It has us in a small wave 4 down and once complete we should shoot up towards 950. If this count is correct, this current decline should not go below 885, which is the wave 1 peak. Doing so would violate one of EW's rules.

The EUR/USD seems to have broken down and should be in a corrective phase down. Gold is falling with it.


Michael K. said...

Good thing the s&p didn't drop below 885. Darn, I got class in 30 minute and its the final. Hope you are right and the market won't drop below 885. Take care

Michael K. said...

Hi todd, the s&p broke the 885 wave 1 peak, it went as low as 877.44. Do you think we are in wave 1 of C downward? Or are will going into wave 5 of B since we are approaching Christmas?

Thanks for sharing us your thought.