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

Monday, March 7, 2011


From the last few posts, my sentiment has been: I had a 'prove it to me' attitude with respect to any kind of decent correction, and it is failing miserably to do so. Today is starting to change my mind. Maybe not 'proof', but 'circumstantial evidence' at least :)

Nice move down, good volume and breadth and set a new slight low. However, we have not yet broken the 23rd low. It needs to do that soon. So assuming that it does, this is the count that I like.

Again, I would strongly caution against trying to count the move down from 18th as an impulse (i.e. 1 = 18th-23rd, 2 = 23rd-4th). That count is absolutely absurd (and like I was lamenting on Thursday, I did actually see more than a couple of people showing that ridiculous count). However, I do like the A-B-C count below and the C looks like it could be a nice tradeable impulse.

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