Wednesday, December 27, 2006

NQ Chart

A possible Elliott-Wave interpretation of the market action of the last month (using the NQ futures chart) ... we would be currently in wave 4 of the final downwave of the correction with just wave 5 down to go to complete this month long correction. Then expect a rally to exceed the 2006 highs. Up till wave b of B it had looked like we were in a triangular correction... but soon the breakout from the triangle failed and a larger corrective pattern developed. This happens all the time with E-Wave which is why it is such a hard tool to really use for trading.

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