Some Ellioticians have called the 2009 low a generational bottom and open the possibility that the Dow is in an expanded flat formation.
Wave B could be 1.236 or 1.382 of A in an expanded flat, with a target for B at 13292 or 13590. B should stop near 13600 for this being true.
Of the Dow groups, Basic materials looks the weakest with the likelihood of B wave already ended. My stop for this week is at 283.16, any daily close below this level is a strong signal of a change of trend.
30 minutes Basic materials already in a downtrend
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- Erick Stern
- I am a civil engineer who likes charts, to me, speculating in the markets is both a hobby and a second profession and in my view the stock market is the most honest environment, since it is only your knowledge and preparation that matters. I live, and work in the construction industry, in the Dominican Republic. I read and answer all my mail so please feel free to write firstname.lastname@example.org Thanks, Erick