Should have published this a couple of days ago, when i already have the 3 waves drawn. Surprisingly enough, if you just follow the technicals you will note that everything may play around that. Today we have Russia being lowered on rating by SP500 and 2 red days on tensions between Russia and Ukraine. I am not sure if mr Market timed the events or not, but companies like Yandex, Facebook, Zynga, Netflix - that have reported quite good numbers just got a cold look from the market.
So what now? as the chart shows, it is either down from here, or a small wave down then up, then continue the down sentiment. MACD seems to indicate that there is some potential for going lower at the moment, so the green arrow was added on that. It was added because seeing how the market did not have any strength to even hold or lift the gainers after their ERs, i would leave some room from a straight down action from here. With all this, it seems to be inline with the top in may model, and the prediction of a correction just like in 2011.
So what now? as the chart shows, it is either down from here, or a small wave down then up, then continue the down sentiment. MACD seems to indicate that there is some potential for going lower at the moment, so the green arrow was added on that. It was added because seeing how the market did not have any strength to even hold or lift the gainers after their ERs, i would leave some room from a straight down action from here. With all this, it seems to be inline with the top in may model, and the prediction of a correction just like in 2011.
