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Today was an amazing day when viewed relative to the previous inside day
and the day prior to the inside day - both buy and sell signals were
given by the daily pattern. The spring reversal across the pivot low of
the 25th on the 30 minute chart was very strong. I have a 5 wave decline
off the 03Jan high followed by an ABC into the PH on the 14th followed
by a 5 wave decline into today's pivot low - exactly what I would expect
to see in an ABC correction of a larger degree. The only problem with
calling the decline complete is that the 5th wave has not subdivided as
should be expected nor has the minimum .62 3:5 wave expansion objective
at 1378 been met. Thus I view the question of completion as unresolved.
Either today's decline will prove to be w.1 of w.5 and the decline will
continue, or the structure will be imperfect and the market will now
move to new highs - a close above today's high would resolve the issue
in favor of the bullish case and would probably give my breadth models a
nudge into buy territory. A close below today's low will signal that the
correction should continue - perhaps to 1368.
That's the thing about EW, it is quite useful but imperfect so one must
always go with the flow.
Earl
----- Original Message -----
From: <Jpilleafe@xxxxxxx>
To: <boggio@xxxxxxxxx>; <realtraders@xxxxxxxxxxxxxxx>;
<eadamy@xxxxxxxxxx>
Sent: Thursday, January 27, 2000 4:35 PM
Subject: Re: [RT] Re: deja vu all over again?
> 4. I am viewing the decline as having comprising 5 waves down with
> today's selloff completing the 5th wave down.
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