Wednesday, September 29, 2010

Elliott Wave Update - September 29th

Prices have been in a narrow range and I am speculating this has something to do with end of the quarter. But selling might start tomorrow or the beginning of October as traders will try to lock in profits. The low volume and deteriorating internal point to an end of the rally. However, the charts do indicate the possibility of an Ascending Triangle that targets the 1170 area so if we "great" news the market might just get there. But I favor at the very minimum a pullback given the fact this has been a ridiculously bullish month in the absence of any good fundamental news. I've been reading that the expectation of a weak dollar and inflation is what might be fueling the rally and from that perspective I can see why the market will continue to go up. Obviously, our purchasing power wouldn't really be going up (in US Dollars) but nominally we would have "bullish" numbers.. just like the Zimbabwe stock market looks very bullish in worthless money, it made Zimbabweans multi billionaires overnight.. in Z dollars (Interestingly enough, the Z dollar was at one time worth more than the US dollar)

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