Friday, December 5, 2008
Sell Off to New Lows on the Year is Underway; Dec. 5, 2008
With the contracting breadth, impulsive (5 wave) declines, choppy weak rallies, and now break of the ascending trendline, we can be confident that the next declining phase in this bear market is underway to new lows on the year (below 741 in the S&P).
Above is a 15min charts of the Nasdaq 100 showing the clean strong break of the ascending trendline, and with this morning's decline it created another nice 5 wave drop. So according to Elliott Wave Principle, the trend is now down. My target is for new lows on the year to be achieved farely quickly which will bring the S&P below 741.
I am fully short the S&P and Nasdaq 100, along with gold. I have no long positions right now.