Monday, August 30, 2010
An Flat Correction is Complete
The S&P wave ii correction has unfolded as a "flat correction" and might have finished up its high on Friday. If the wave ii correction doesn't subdivide into a more complex correction, it means more heavy selling in the immediate future.
Above you can see that currencies tied to risk appettite apear to have topped and are resuming their downtrend as both the EUR/USD and USD/JPY are falling hard and in an impulsive manner. If you remember a few weeks ago I mentioned that the EUR/USD topped about a day earlier than the stock market topped. So if currencies are leading the stock market again, it means the stock market should have heavy selling in the very near future since the currency risk trade appears to be breaking down.
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.