Friday, January 22, 2010
Secondary Indices/Sectors Showing Much More Bearish Potential
One reason I don't want to get too cute in trying to get long, or take a lot of profits off the table right now, is because other sectors and indices show alternate wave counts that are extremely bearish in the short term. These can also be translated well over to the Dow and S&P as well, especially because the slope of my proposed waves 2 and 4 are quite different. Notice in my S&P chart (click here for chart) that the wave 2 is long and wide while the wave 4 is short and narrow. This may mean that it's actually a series of 1s and 2s, like what I have labeled in the Russell 2000, Nasdaq Comp., and XLF (financial sector) in the attached charts.
I need the market to play out some more here to get a better idea of which counts are correct, but all the top counts I have right now point to lower levels overall, with this week's highs remaining intact for a while.
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.