Good morning all,
Waiting for one more swing low in stocks, all major indices, down to their corresponding supports.
I use CAC as a reference, but other indices should move in sync.
CAC40 should land in the range of 4050-4100 and then will be rejected by a major support formed since Sept 2011. Also in the area of intersection with the trendline lies the 0.618 w1..w3 target for w5, so it will make sense that we land there.
Once we complete the impulse we should expect a good bounce upwards retracing 2/3 of the decline, so it will make sense to close all short positions at the low, in order to reenter significantly higher a couple of weeks later.
Waiting for one more swing low in stocks, all major indices, down to their corresponding supports.
I use CAC as a reference, but other indices should move in sync.
CAC40 should land in the range of 4050-4100 and then will be rejected by a major support formed since Sept 2011. Also in the area of intersection with the trendline lies the 0.618 w1..w3 target for w5, so it will make sense that we land there.
Once we complete the impulse we should expect a good bounce upwards retracing 2/3 of the decline, so it will make sense to close all short positions at the low, in order to reenter significantly higher a couple of weeks later.
