Short Term Trading Member Forum

[techcharter]

SPX E-Wave Update.

I think the top is in for US markets. Through May I was looking for a correction. I think the correction ended around May 23. I then was looking for a final rally to test the April/May highs. I think that rally in the last week of May truncated significantly, and disproportionately short in time. I'm counting May 2011 as the end of the bear market rally which started in March 2009.


http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=6&dy=0&id=p76107772188

Over the past 2-3 weeks the markets have moved to the downside very rapidly, which is characteristic of a truncated move.

The last week, and ending Tuesday June 14 looked corrective, probably wave 2 flat. This morning erased wave c of the flat, starting wave 3. If wave 1 fell 6%, then wave 3 should fall at least 10%.

The wave count for the FTSE CAC and DAX ar too difficult for me to count at this time.