Wednesday, March 3, 2010

SP Fibonacci .78 Retrace

 
click to enlarge
This count looks like a 5 count up , but also counts as a series of abc's, 3 in fact, corresponding to the abcde labeling. The important thing is the .78 retrace of the entire move down from 1148 to 1040.
So there is good probability of either a serious pullback as a 2 if your a bull, or possibly b down of a longer lasting 2 up of larger degree, or even a completion of 2 at today's highs. In other words looking ripe.
Taking out any of the previous lows would look increasingly bearish of course. 

One of the characteristics of a 2 wave is that it feels like the resumption of the old trend, with the very late buyers deperate to get on board before the next big trend. 
Well, I was feeling it yesterday, listening to all the Bloomberg interviews with the mining industry bulls down in Fla.

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