Wednesday, August 19, 2009

SP Resumes Downtrend

The retest of the 990 breakdown point has failed. That was also a .382 retrace of the 1st leg down. The pullback to this mornings low MAY turn out to be an X wave , but in any event it is now clear that new lows will be coming, probably sooner rather than later. The next SP leg will equal the 1st at 950, an interesting tech point as well , see chart.

It is important to point out the potential for a 3 wave however to extend, and that it is commonly a multiple of the 1st wave, 1.1618 for instance.

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