The ideea of the 5 wave formation came to me a few months ago . It went beatifully. Now we have a possible , i say possible because we have to see if it will rally.
Now let's take an indepth look at the chart. The first wave starts from the bottom line of the broadening formation. From that point, the spanish stocks rallied sharply, together with Europe. The road to the 10000 psychological level took 5 months, forming a 5 wave formation.. You can see labeled the fibonacci percentages, which makes this chart even more beautiful and predictible. When the 10000 level was reached, a corrective move started in a , forming an (probable c). The flag was broken at a point, but right after that we had a which warned us things aren't looking good. Now we have a dragonfly which points to a reverseal. This long candle penetrated some very strong support levels (weekly support, daily support, fib supports and the flag bottom line) and closed above all of them. A look at the histogram points out that even though the price moved below point a, the histogram didn't go lower, meaning that the bears are losing power.
Now we have to wait for a strong open, which would be the entry signal. First target would be 10000