I Have My Doubts That This Is a Top
For the last several months, I have been ranting about how the decline from the April high did not count as a five-wave decline but, rather, more as a corrective decline. On Tuesday, when the S&P 500 broke above the prior high of 1422.38, the move invalidated the bears' bigger case for calling that prior pullback a five-wave decline. This is because a wave 2 retracement cannot retrace further than the start of the prior five-wave move. A move beyond the start of the prior decline told us clearly that the prior pullback had never been five waves down.
However, I am sure you will start hearing about how the market has now topped in a larger-degree wave 2, and that it has started 3 down. Again, I say to those analysts, "Let the market clearly prove it to me with five waves down."...586 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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