Some violent moves today thanks to the aftermath of Bernankes speech yesterday then the Greek bail out anouncement this afternoon.
As I mentioned in last nights post, this correction could turn into a triple zig zag and that is what I think is happening. We have moved down to the bottom of the old channel (if you ignore the preceeding expanding triangle which overshot it).
I think we will see a rally up to the top line to form wave B followed by another sell off to the bottom line to form the last wave C. After that there MUST be a big rally as there is no such thing as a quadruple zig zag! So some violent ups and downs to come (reminds me of that day out at Drayton Manor with the kids a couple of weeks back!)
One last thing ... the wave A today may not be finished as we have a potential new lower trendline thanks to that exp triangle. I will continue to count the waves and try to assess what is happening next few days.
Comments