There is a game going on of 'chicken' in the market between competing technical views. Pure technicians look only at support/resistance and pattern breaks. Ed Downs is basing that opinion on that triangle he's been showing for a month. He's right, it projects to 5600. But then there's a different point of view. That's elliotwave and that really is what most of the big traders are watching.
If you go strictly in wave counts, we are in a clear 5th wave which projects in strict fibonacci levels. Those levels are now satisfied. I find it very funny how the 5 best market timers out there are now all on the same page -- BUY NOW. They all must be looking at the same thing.
BILL FLECKENSTIEN
GARY SHILLING
DOUG KASS
MOE ANSARI
ROBERT PRECHTER
Actually, Kass and Ansari are saying THIS WEEK marks the low of this 'A' wave.
So, the triangle break projects 5600. But the wave counts say now. We'll see who's right. But in any case, the bottom is right around here. The resulting rally will be fast and bigger than anyone expects. I tend to think the catalyst will be that House hearing on mark to market next week.
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