Tuesday, February 8, 2011

Wave 5 is over

Wave 5 of the pattern seems to be over or about to complete tomorrow morning. So we should see a correction starting tomorrow if we follow Elliott Wave rules. I think everyone will be watching this correction since talk about a deep correction is all over the place now. Volume is very light and this usually indicative of a topping process BUT like I've said before, as long as these corrections pullback just enough to test the trend average, the rally will continue regardless of how overbought the market is. Once the pullback comes, I think the market will set itself up for the strongest rally yet since the March 2009 low.

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