MSFT and INTC lead WAVE C
MSFT and INTC have both completed their WAVE B of the DotCom bubble Pop. They've started WAVE C. Their shear size and impact on the global economy makes their charts worth watching. Where they go, so goes the world.
MSFT WAVE A was a motive wave and forms both time and price fibonacci ratios with WAVE B, a triangle. Expect WAVE C to be motive and take less than a year to complete. The price target is in the $8 area. The 11% selloff 2 weeks ago when MSFT reported earnings is technically significant for those not using e-waves or hurst cycles technical analysis. The price broke the triangle's lower edge on record volume, and there was follow through as the price consolidated and eventually made a new 52 week low after the selloff.
INTC's WAVE A was a zigzag and forms both time and price fibonacci ratios with WAVE B, a triangle. Expect WAVE C to be a zigzag. INTC has not decisively broken the lower edge of the triangle. Zig gets support in the mid teen$. The price target for the zag is the $5 area.
The NDX is lagging the MSFT wave count. This presents an excellent opportunity to short other tech stocks which are starting WAVE C of the DotCom Bubble pop, and have not yet broken below the lower edge of their triangles. Likely candidates are those that are about to report earnings.
Since a zigzag or double zigzag is forming, I'm going to go out on a limb and predict a DEFLATIONARY depression. The cancellation of the M3 report can be viewed as a psychological tool to get other countries to devalue their currencies in an effort to keep their exports competitive. Since the US gov't is lending digital dollar$ and not printed ones, the physical circulated currency will not face the same fate as the virtual currency. I would be more likely to agree with an INFLATIONARY depression if the DotCom Bubble correction were a flat.
