ShepWave.. CNBC Signaling a TOP in the Markets?
by ShepWave.com
Posted: 9/14/2006 02:47 EST
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Shepwave.com - www.shepwave.com Print, and hit the Back Button - page served 9/14/2006 2:42:54 AM ShepWave Special Update.. CNBC signaling a TOP? Date Posted: 9/14/2006 2:42:32 AM
I tuned in to CNBC today and they had the special ticker up showing how many points away from an all time high the Dow Industrials Index was at that time. Back in May they did this and the market quickly sold off, almost immediately. Now,, ShepWave is NOT expecting the All time high to be hit on the Dow. Of course it is a possibility.. this would definitely alter our preferred Elliott Wave Theory counts for the long term. BUT, the bottom line is that once the current rally is over the indexes should see a very precipitous decline. Because of the importance of the current market action and the fact that a lot of investors have their hard earned money in the market on the LONG side I am making this update available to everyone. Subscribers and non Subscribers. I will NOT put in any targets for the next "DOWNWARD" move. One, I will save that for Subscribers and two, until a confirmed TOP is in it really can't be done most effectively. Click here to read an excerpt from EWI Elliott Wave Theorist. written by Robert Prechter. Join CLUB EWI if you are not already a member. It is FREE. It is titled Bulls & Bears and War. The article is actually written by Galasiewski.. Prechter puts out the report. CHARTS REMOVED The Weekly chart of the Dow Industrials Index above shows that the rally from October '02 to May lasted the same amount of time as the Sell off from the highs in January '00 to Lows of October '02. This may not sound like much importance but.. the fact that a Fibonacci time relationship of '1' was met this 'would' be a likely time for the reversal to take place. The fact that the index DID NOT make a new all time high leaves the preferred bearish counts in tact. CHARTS REMOVED The Weekly chart of the Nasdaq 100 index shows that wave 4 of the previous 5 wave decline has been hit. According to the rules of Elliott Wave that is an 'ideal' target. Now.. will the index make another run at the area again? Possible.. but not likely. Turn around should be imminent. I will use shorter time frames charts to show subscribers technicals strengthening the bearish return. CHARTS REMOVED The Weekly chart of the S&P 500 index above shows that the rally from the lows of October '02 have rallied to hit 'PIVOT POINT' resistance from the wave 4 of the five wave decline. One key technical .. suppose the Dow and the S&P hit a higher high than hit this past May.. Notice the extreme bearish divergence on the Weekly charts.. The following downward action should be very quick and severe.. This is the reason ShepWave has positioned ourself to profit from the Longer term trend.. The markets may go higher.. but is it worth the risk? Also, for you Dow Theorists.. the Dow Transportation index IS NOT confirming the recent rally.. This should give all 'educated' traders a heads up on the future direction of the major indexes. The VIX is also showing some key indications. I will try to go over these and show some Daily and shorter term charts for the index in the next update.
GOD BLESS YOU ALL. Shep Browse through our BLOG for recent trade data. When the Dow Industrials Index recently hit a multi-year high in May the Financial Television Channels were pumping the rally. Flashing a ticker showing how many points to a new all time high. Who did this help? Click here to see one of many updates published that week showing our analysis and how we were positioning ourselves to PROFIT from the upcoming turn. Are these Financial Information channels helping the average investor or perpetuating denial as to the mid and longer term direction of the U.S. Markets? Click here to read our update from May 13, 2006. TARGETS HIT. |
| 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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