Tuesday, July 3, 2012

Higher highs

The market did a good job and actually almost reached the lower target I had of 1378 and it might just get there in the next session before we get the W4. Whatever it is, so far this wave that started from 1313 is 2.48 of W1 and 1378 would be exactly 2.618 thus my target. And given how strong this wave is, I favor a W3 and not a C wave which would indicate higher highs ahead and not only after we put in the W5 to this bullish wave but to the entire intermediate structure. I have been procrastinating on doing the longer term count but when I look at the daily chart, I can see how this wave that started from 1309 could be W1 of an intermediate W3 and if that is the case then 1500 is a given. The trends definitely support it but obviously we'll have to wait to see.. the factors that don't support it are the current headlines but like I've said before news are not exactly the forefront of the stock market so who knows, maybe by Christmas (if the Mayan prediction doesn't pan out) the EU problem will be gone, China will be growing fast again and so will the US. Hope for the best, prepare for the worst..

And speaking of preparing for the worst, here is an article by EWI which are a bearish bunch.. but if you would like that stuff, you can feast on it with the info below.. (just don't buy into their DOW 400 target! they're out of their minds)

Happy 4th of July!


World's 15 Biggest Banks Get Downgraded -- What This Means for "Safe Banks"

Another one of Robert Prechter's Conquer the Crash forecasts comes true
Elliott Wave International

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