In a recent post titled, "Prospective Swings Upcoming" was a view of things that, so far, have developed quite as anticipated...
In the formation of wave e of 4 we're about midway.
My thinking per this present period bouncing in a sideways trending trade regarded the matter of time necessary to draw momentum (bottom panel) down to a position where it might likely sink below its low set during formation of wave 2 of (c). This momentum sinking has been achieved...
Seeing momentum now in the negative, and relative strength (top panel) on the sell side of its range, there is plenty of reason to believe the worst of wave e of 4 could unfold at any moment.
The effect of this on other technical measures is expected only all the more to add to underlying weakness building up for many, many months now — the likes of which you might rightly expect would precede such an unparalleled collapse as is slated to make 2008 appear a walk in the park (itself no long shot given the debt trap consuming lenders of last resort)...
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Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.
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