A View More Technically Justified ~ The Risk Averse Alert

Thursday, August 26, 2010

A View More Technically Justified

Yesterday's view needs adjusting. Something covered a few weeks ago advises this.

NYSE McClellan

The McClellan Oscillator's July burst had been called "third wave like." I want to keep with this view. Thus, the wave count variation above is thought better technically justified.

Whether wave c ends wave (b) of B, though, is up in the air. Well enough for now is it could.

This week's continuation of selling that began on August 9th no doubt is weakening the market's technical state. This confirms the tone of trading we are seeing, as there appears considerable difficulty holding any bid.

Given the manner in which weakness in fact is persisting, it seems unlikely the market's early-August peak might soon be challenged. Still, my view remains a bounce is due ... once five waves down from August 9th's peak have completed. It is not yet apparent the fifth and final wave lower has run its course.

Fast Money
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