The March 2009 to May/July 2011 bull market unfolded in five quite clear waves as well as SPX and
INDU. The one can count
these waves as five Primary waves, expecting this bull market off the Mar.09 Supercycle low to be of a Cycle wave
degree.
The
recent two year bull market I have
currently labeled is Cycle
wave [1]. It should be followed by a Cycle wave [2] as a bear market. Recently this bear market has unfolded its first A
wave and the second B wave hopefully. We should expect one more bear move to
unfold as wave C to complete the Elliott Wave pattern called “zig-zag”.
Fibonacci
relationships suggest a potential low at three specific areas: 38.2%
retracement at 2262, 50.0%
retracement at 2071and 61.8%
retracement at 1880. Currently
I am expecting next move to 2100 support area to unfold next few months. I
can
confirm bull market in correction on weekly
base.
COMPQ – DAILY TECHNICAL OUTLOOK
The current downtrend started in early July at 2879. I can count the current wave A as completed,
because it contains five clear impulsive waves. I have labeled B wave as
completed because it has already corrected 50.0% of A wave, but it have may not
finished yet.
What should follow next
is a preferable rally
as Primary C wave. Potential target is the 2070 support zone.
We shouldn’t consider any bullish
move as a resuming the long term bull trend until breaking the resistance area
2600-2660, and closing above it on daily base.
