|
PureBytes Links
Trading Reference Links
|
Dec 1, 1998
While the street was asleep/Before the bell : Reply to a listee :
Mentorspeak Extracts "
Yes - the 7878 / 8328 trendline has been broken. We were presuming
that this was the 2 - 4 trendline but obviously that reading has now
been negated.
It certainly appears that a c-wave of some degree has started
downwards from the recent high of 9380. However, at this stage, we
do not wish to speculate on the degree of this c-wave. The market
has to reveal more before we can come to a possible conclusion.
If we wish to keep our 5-wave count from 7467 intact, then what we
are witnessing is a c-wave of the 4th wave. In that case, the fall
will not be very steep but may create conditions of acute panic.
This is normally what happens before the market opens up an extended
wave. However, I repeat that at this stage we are only speculating
about possibilities. We will need more data points (i.e. more time)
to see what is actually happening.
The possibility of a c-wave of a larger degree which will retrace
the complete rise from 7400 is what exists in the minds of most
analysts today. This writer's problem is that this possibility only
exists if a credible and satisfactory corrective wave count can be
applied to the fall from 7367 to 7400 (or 7467 - whichever is the
bottom). After several attempts, I am unable to arrive at a corrective
count for this fall "
|