Tuesday, December 14, 2010
Pre FOMC
Looks like price topped around 1.3497. The 261.8% fib extention of wave a of Y and the 61.8% fib extention of wave W were enough resistance to reverse price. The reason to be cautious, is that price decline in 3 waves from the top. This means that the wave Y top was probably a major top A and a major wave B has now started. So it is normal that a big corrective wave starts with a smaller corrective wave. Don't forget the FOMC event, which could trigger big price moves.
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Hey Jeremy I would agree on the major wave B as this has the right look. Price structure trumps everything. Side note is the daily rsi never broke above the trendline down since October (yet)so we may see price action with not much conviction that can shred anyone emotionally involved. sigh, I really would have enjoyed a 3rd of a 3rd down heheh -Al
ReplyDeleteHi Al,
ReplyDeleteI hear you, B waves are usually slow (compared to 3 of 3 waves anyway), but that doesn't mean we can't make any big money on it. With a little patience, we'll get a 3 of C, which should also be powerfull.
Best of luck,
Jeremy