Monday, September 10, 2012

Weekly Wolfe

Some technicals are pointing to a top having been put in already or very close to it. This would be a long term top.

First, is the Ending DIagnonal I have been tracking. We got a move to the downside today. Not a big move and most likely not from the 'top' for which I believe we have some room to the upside.

Second, a Wolfe wave on the weekly chart I have been tracking is shown on the chart below. For the fib ratios to be perfectly aligned, we should rally up to 146-7 on SPY. The last leg (marked 5) of the Wolfe Wave setup is very close to the 88.6 fib retrace of the 2007-9 downleg. When many technicals point to the same area, it should be heeded.

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