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

Thursday, March 3, 2011

No impulse for you!

First question? Are we still in a topping process? Like I have been saying the last few days, I remain unconvinced. I was saying Friday that we needed to make new lows by the middle of this week and the opposite happened. I am now much more skeptical of a pullback here.

Second question? Assuming (just for a moment) that last week did mark a top, is it still a possible impulse down? And my question back would be, what are you smoking? I really hope I don't (but I'm sure I will) see a bunch of really contrived 1-2 down counts where the 2 is basically the move from the 23rd to today. ... That is an absolutely absurd count. My advice: don't fall for it. Ignore it completely.

Like I have been maintaining for awhile now, if this is a top and we are in the midst of a more serious correction, it will be a corrective wave down, not an impulse. The mess since the 23rd could be a B wave (which have no proportionality or time requirements/guidelines, unlike 2's). But honestly, I really don't buy this count.

I had a 'prove it to me' attitude with respect to any kind of decent correction, and it is failing miserably to do so.

blog comments powered by Disqus