Wednesday, March 9, 2011
Stocks About to Explode, Play the Breakout; Euro Dropped in 5 Waves
The market did nothing today as far as price action goes as it continued to consolidate in a tighter and tighter range, typical of a triangle pattern. Volume also continues to decline as the range in price gets tighter, also typical triangle behavior. Other than that, nothing of note to report. The price action and internals suggest a triangle is finishing up and will result in a sharp breakout.
Learn Elliott Wave Principle
The euro followed my forecast yesterday for one more new low to give us a nice 5 wave decline from the high. So far my gut instinct has paid off and now we have solid EWP evidence a top is in. I'm a seller on rallies as long as 1.4035 remains intact.
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.