Thursday, July 1, 2010

Fabled (3) of -3- of 3 of III ?

click to enlarge/sharpen 


The count calls for the SP to accelerate down from here immediately , or quite soon, without overlapping 1042. Alternatively, if there is a complete -5- down from the 2 high of 1130,  it will accelerate down after another dead cat bounce. If the latter turns out to be the case, the  .382 retrace should hold it at the middle of the  presumed -3-. 

Taking out the important neckline on the 29th , back testing it, and failing to print above it, is extremely bearish. Yesterday, by overlapping the previous low,  there is another "moment of recognition", and a successful back test of that, followed by new lows, would be exactly the kind of pattern associated with the BEGINNING of an extended wave down; the (3) of -3- of 3 of III.


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