Tomorrow is a lunar eclipse. This sometimes brings out the worst in the ewave community. Even the Great One himself, Prechter, launched yet another interim bulletin this morning to encourage his faithful to stay the course. His charting was clear and concise - more on that below - but his long preamble was intended to show how the Carolan Spiral Calendar could be made to substantiate the market top in 2000 by matching it to major turn dates of the past - 1350, 1492, 1600. A decade ago he had done the same analysis but predicted the top in 1995, so some revision was in order! Good to know that astrological predictions are so, well, flexible. On top of this, a number of folks are touting the eclipse as presaging a change in mood and therefore an end to this extraordinary wave 2.
Back on Earth, this is an extraordinary wave 2. Zoran sent me an analysis that shows every major index - Dow, SP, Naz, Dollar, Bonds, etc - are on the 'wrong' side of their moving averages! Sounds like a planetary alignment. The bullishness is even more extreme, and as noted previously, is higher than at any time during the mania! This is likely to end badly, and soon.
Prechter's view is that we are in the final throwover of an ending diagonal triangle, which may have ended yesterday but likely has a bit more to go, maybe just a day or two. This might go up and touch Dow8770, then turn; it could even go higher, perhaps as high as the January high of 8869 or even SP954. Watch for these levels & see if they are eclipsed.
High,
I am a technical analyst based in INDIA-ASIA-
if possible can you send me your count on down,
If it intrest you I can send you my count on Indian Stock Index -
Regards,
Hitesh Bhawan Chotalia
Posted by: hitesh bhawan chotalia | Tuesday, February 24, 2004 at 12:04 AM