Tuesday, April 21, 2009
Overnight Decline Makes Clear 5 Wave Decline; April 21, 2009
Last night's decline in the S&P futures makes a very clear 5 wave decline (see above chart). With 5 waves down occuring after touching the top of the parallel trend channel, and having extremely weak NYSE breadth during the proposed 3rd wave, tells me that the larger trend is now down in the at least the short term. However, with 5 waves down it opens the door to a possible correction of that 5 wave decline. Once complete, the market should continue lower to new lows on the month.
My target is the 760-780 area.