Friday, May 29, 2015

Chopped Stocks = STFR

In Elliott Wave Theory and elsewhere, after the terminal pivot and a new first primary wave is in, the corrective 2nd wave is characterized by a deep retrace, with the consensus opinion being that the former trend is reasserting itself.
Not.
 Right now the Dow is indicating that we are in a "suckers rally" by putting in a lower low (though other indices are still stronger looking).

Note the "b" wave lower low, with an abc subwave structure, suggesting it is all part of a larger corrective move to be labeled eventually a 2 .

Will have to wait and see how the other indices resolve the move but it is highly unlikely to be as an explosive new high.

Sell the friggin rally.


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