Wednesday, November 9, 2011
Stocks and Euro Top, Look out Below!
Judging by the internals and price action today, all signs point to another significant top yesterday. Adding to this is the fact that the S&P cash index topped and reversed right on the fibonacci retracement level of 78%, a common place for second waves to end.
Today's internals were extremely bearish with only 1 S&P stock closing higher, 98.5% of NYSE volume to the downside, and 9.6 decliners for every 1 advancer on the NYSE. When you add everything together, the market is tracking the wave count well and it means that heavy selling to much lower levels is ahead of us. The only "question mark" out there for the short term is how the Thanksgiving and Christmas holidays will play on the markets since they tend to be composed of light volume rallies for the market. Yet the wave count suggests aggressive selling in the coming months. We'll see.
For my charts and wave count see yesterday's post below.
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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.