Wednesday, September 2, 2009

The beginning of the end?

Already on Monday the SPX fell below 1016, what I considered to be a first indication that the bear market rally is finished. The next very important support lies at 979, the low of Minor B. I expect this level to be tested to finish the first wave down. Afterwards a wave 2 should occur, possibly to challenge the resistance at 1018. This rally should be a great short opportunity (with a stop at 1039).

Primary Count: in [iv] or [v] of 1 of (1) of Primary [3]/[C]
Alternative Count: finishing [ii] of C of Primary [2]/[B]

EWI: You might have already seen all the EWI Banners which will be decorating my blog from now on. Last week I recieved an e-mail from an EWI employee. He wrote that they are interested in working with me. I accepted of course and so, from now on, I'm an official affiliate of Elliott Wave International : D.

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EUR/USD: It breached the support line of the rising wedge and will possibly test it from below later this week.