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Time For A Bear Nap…

By Red, on August 12th, 2010

But next week should make the Bears’ Day!

Ok gang, it looks like we came close enough to the 107.35 SPY FP from last week to fulfill it.  We hit 107.59 on the opening gap down and rallied hard from that level.  This tells me that the short term bottom is in, and we should rally tomorrow and early next week too.

However, this was simply a “tremor” warning us of the “earthquake” coming in the market very soon.  So far, it’s looking like mid to late next week could be the start of wave 3 down of wave 3 down… meaning I think we completed wave 1 down of wave 3 down today at the morning low.

(I’m having problems with the video showing up, with the embed code?  However it’s working by going to the YouTube page at… http://www.youtube.com/watch?v=E_o-e2eMVE0)

So, next week should have us going up with a wave 2 inside wave 3 down.  While I don’t know when we are going to top out, or if we already have, I do know that the next big move down is going to have a lot more then just 1-2 days of selling.  It’s going to be a very steep decline down.

I believe that it’s going to start next week, but again… that weekly chart could easily push back up and delay the move down until the Legatus meeting.  In other words, I’m not sure yet if we are going down to Dow 8300 into the meeting, or if they trick us all and rally this thing up higher in front of the meeting?

I’ve seen them do it before, so don’t get yourself convinced that the move down is coming for sure next week.  It could be extended another week or two.  Let the charts tell you where we are going.  Right now, I think we are going up tomorrow or flat.

Then well see what next week brings us after tomorrow’s close.  Keep your eye’s open for FP’s as they’ve been very accurate here lately.  I’d like to know the upside target for next week, and they might just be nice and tell us.  If you catch, let know and I’ll posted it.

Red

Weekend Update...

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Uncategorized   Bears, Bulls, DIA, DOW, SPX, spy, stock market forecast  
A Very Bearlishess Day! »  
  « Weekend Update…