Wednesday, January 21, 2009
Rally to 870-900 Then Massive Selling to Below 740 Quickly; Jan. 21, 2009
Yesterday's 300+ down day was very unexpected and threw a wrench in an otherwise perfect setup. The rally I called for on Sunday's post was delayed by a day. We are now in the rally phase that should take us to the 870-900 level over the next few days or couple weeks. From there, we will give way to a large wave 3 down that will run right through the 740 low of 2008 and probably well down into the 600s. This rally phase we're currently in is giving me an opportunity to add to my short positions as it rises.
I do not want to miss the next selling phase. It should be feroucious, and should be somewhat similar to the October selloff, only not as large.