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Saturday, January 22, 2011
A really interesting video from Roy this week-end, a look at how AIG and PCK, a California Muni Bond, are in a total meltdown now that could very easily drag the entire Financial system down with them, to view the clip, Click here!!!
It is time to start looking for possible downside targets, and identify some areas of support because odds have increased over the last week that we might have a top of some sorts in. Most of these levels are only useful IF we have one in now. 1228 looks to be the first biggie, the 61.8% retracement spanning the largest range, the top back in '07 and the bottom in '09, after this one is where there are multiple levels highlighted by the yellow circle between 1121 and 1228 that would fit in with different bullish wave counts all based on the shorter-term waves. Any break below the 1121 level opens the door for a 65 point drop and would start putting the bullish wave counts in jeopardy unless 1296 was the top of the 1st wave up, then a 38% retracement down to 1056.74(black) would be perfectly acceptable. Anything below 1014.14 in my opinion would become very bearish and would open the door for a LARGE sell-off that could even get down to test the low of 666.