More Proof of Looming Financial War ~ The Risk Averse Alert

Thursday, February 21, 2013

More Proof of Looming Financial War

Further confirmation of a prospective Elliott wave count presented here yesterday came as a result of today's setback...

We see the differential of NYSE-listed issues hitting new 52-week highs versus those setting new 52-week lows falling below levels reached during formation of wave 2 of (c) (late-December 2012). Thus does the prospect that, presently unfolding is wave 4 of (c) appear confirmed.

Generally speaking, it stands to reason that, a 5-wave advance (in this case forming the component waves of wave (c) off mid-November 2012 bottom) would begin displaying relative, underlying technical weakness during formation of its 4th wave. By the above measure of the market's underlying technical state we see this.

Supplementing yesterday's review of the market's notably weak underlying technical state, too—this objectively revealed by way of a deeply suspect NYSE advance-decline differential accompanying formation of wave 3 of (c)—is the NYSE new 52-week high-low differential's persistent divergence from its mid-September 2012 peak, itself only growing more stark as the market has been pushed higher during these early weeks of 2013.

Desperate, weak hands only stand further exposed on account of this disparity. It's not bad enough these cannot draw in more suckers who might help alleviate their burden of being trapped, such as a still diminishing, daily volume of shares exchanged objectively reveals. The NYSE's negatively diverging high-low differential further demonstrates these weak hands can't even massage each other! But more confirmation a widening conflagration—financial war—is looming...

Word on the Street
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