I analyze macroeconomic issues from a fundamental perspective, and I analyze market behavior from a technical perspective. Original macroeconomic analysis can be found here and both macro analysis and commentary can be found on my Caps blog. If you like or appreciate my analysis, please add yourself to my Following List

Sunday, August 1, 2010


Spending this weekend looking at divergences and momentum and it is giving a compelling case for the end of this wave next week or so. But what would be the count to support it? The potential Ending Diagonal fits the bill. But the problem with that count is the almost running flat that it would create. Not that this is the rarest pattern in the world (which goes to the "expanding ending diagonal" which is 99.9% of the time fictitious when someone identifies it as such) but it certainly is an unsatisfying count for a Minor Degree Wave

... But, if the divergences are correct and the ending diagonal is correct, I wanted to dig deeper to see if a proper expanded flat count could be made to work, and if you view the B wave as an expanded flat itself, then this count can be made to work.

I am liking this count more and more.

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