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techcharter

11/02/15 9:29 PM

#48395 RE: Chuck703VA #48394

SPX wave 3 extended

The rally off the late September lows looked complete when I made my call, but extensions happen. I think wave 3 finished today with a couple days of wave 4 and 5. Even though wave 3 extended, wave I was the largest, and wave v was the smallest. This is a clear sign of momentum deterioration. Think about how a sine function rolls over as it approaches the crest of its wave.