NYSE Bullish Percent Index During Third Waves Down ~ The Risk Averse Alert

Monday, September 12, 2011

NYSE Bullish Percent Index During Third Waves Down

Behold technical similarity in formation of Elliott third waves down presented via the NYSE Bullish Percent Index...

$BPNYA 2007-2009

First, from May - November 2008 when wave (3) of A down from October 2007 top unfolded.


And now, since early July 2011 the beginnings of wave C, set to complete an a-b-c Elliott corrective wave from October 2007 peak and targeting index levels last seen in the 1987-1994 period.

The similar circumstantial setup is rather interesting. Likewise is the present moment's relatively weaker position. All very fitting a massive third wave down whose component five waves began unfolding early-July 2011. The second of these five wave down (forming wave (3) of C) soon should see the NYSE Bullish Percent Index challenge the upper green line drawn above, just as occurred when wave 2 of (3) of A unfolded from August - mid-September, 2008. Over this interim that bump in short equity hedging I have been anticipating likewise could develop.

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