Sunday, March 29, 2009

Sharp Wave C Down Underway; March 29, 2009

If the above count on the 4hr S&P chart is correct, then the market is finishing a "flat correction". This means wave C should go just below wave A at 787 before finishing the downward move. I think a much better target is the 770 area where the prior 4th wave ended and the 38% fibonacci retracement level. However, the momentum indicators are so bearish and the volatility index is still suggesting huge swings in the market in the coming days/weeks, I wouldn't doubt the market falling much further in some other type of correction. So it may just tornado through the 770 level and head on down to the 730 level in order to releive this severely overbought condition the market is currently in. Once that occurs, the market should be on a launching pad to target the 950-1000 level so it will be a major buying opportunity as this market falls in the coming days.

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