Weakness Hound Finds More Bones to Bury ~ The Risk Averse Alert

Thursday, August 15, 2013

Weakness Hound Finds More Bones to Bury

Not to be a fatalist in an age when chaotic collapse of the trans-Atlantic banking system is a small price to pay for bankrupting the greatest republic ever, but the case for a deadly financial heart attack ending life as we know it blindly consumed by the most massive debt trap ever conceived could use one surer sign of exhaustion typically preceding a dirt nap...

That there NASDAQ McClellan Summation Index has been confirming NASDAQ's march higher every step of the way since mid-November 2012 bottom. Likewise by this measure we yet have to see any increasing weakness registering at higher NASDAQ lows over the interim. How's that for an Elliott "c" wave's typical "dynamic"? There it surely is.

We need to see the shine come off this measure before raising the likelihood of the market's imminent collapse. NASDAQ's McClellan Oscillator might need close out the remainder of August pinned to the negative for its Summation Index to present its first sign of weakness since November 2012.

Taking into account all of NASDAQ's McClellan measures, we might then side with the following Elliott wave count applied to NASDAQ's Composite index...

In other words, the remainder of August likely will deliver technical weakness we need to see in the lead up to the market's collapse.

Word on the Street
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