ShepWave
ShepWave.. BOUNCE Coming?
by ShepWave.com
Posted: 5/18/2006 07:58 EST
I happened to tune in to CNBC this morning around 7:00 AM. East Coast U.S. time. The morning team had some 'technicians' on the show saying to NOT worry about the recent selling in the indexes. They said there were NO real reasons to be concerned; that no real trend lines have been broken and that a bounce should be coming. Now looking at the futures which are actually up quite a bit at this time there does 'appear' to be a bit of a rally brewing this morning. The problem is that the recent technical's 'could' be ominous for the BULLS. I find it hard to believe that these technicians and the talented staff at CNBC are not very aware of these facts. The truth, I feel, is that they don't want to tell the public what is going on.
Is the reason for not sharing this truth because they don't want to scare the public and fuel a potential selling panic? Or is it because if they told the truth their advertisers (mutual funds, banks, brokers, etc.) would not advertise? Boy, to live under someone's 'thumb' like that would be miserable in my opinion.
Next thing you know they will be screaming Nasdaq 10,000 just like in Spring of 2000. Fueling the denial rather than the truth.
What does it take to get the truth from these financial analysts who are supposedly trying to help us?
We have not had an 'outside down' week in a several years. See ShepWave charts and analysis from this past weekend and you will see that the indexes are behaving just as we expected.
In this morning's update I show the Preferred Elliott Wave Theory counts and potential short term 'buy' signal triggers.
Bottom line folks is that the recent selling pressure could be signaling the beginning of the continuation of the BEAR trend that began in 2000. A potential 20-30% down move could be in the cards for the Dow Industrials. A 50% hair cut could be possible for the Nasdaq Indexes. ShepWave will continue to show opportunities to make money in the markets regardless of the trend.
With that being said. There is actually a potential Short Term Buying opportunity. The QQQQ could make a $1.90 move. See this morning's update for Trade Signal Trigger Areas.
Shep
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Reference: Shepwave.com is a technical analysis site for the Major U.S. stock indexes. We use Elliott Wave theory along with our proprietary indicators to give analysis for the Dow Industrials, Nadaq 100 and S&P 500 indexes. We specialize in trading the QQQ and DIA.
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