Monday, August 3, 2009
The most powerful aspect of the Elliott Wave Oscillator is Divergence. As you can see in the above chart, there has been a huge divergence building. The Bears are close!
Confirmation will be when the EWO crosses zero. The Ending Diagonal is two small ripples from reversal, which will occur tomorrow.
But don't get too excited. While Bullish % may be at 78.05% it needs to go even higher. There will be a second chance for the public to toss their cash into the pot. Believe it or not, the market has even more upside! The market will only retrace to about 930 before making one last advance to the 1050 area. I expect Bullish % to be over 80% when the bottom drops out.
But a 70 point reversal is going to feel very good to the Bears. Every once in a while we get to come out and play too.
This is my fourth post today. If you have not seen the others I would like to suggest that they are worth looking at. So far no one has commented on the scenario I've come to endorse. I'd like to hear from you.
Analysis presented on this blog has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.
Posted by Robert Campbell at 18:18