The VLE slightly undercut the high of the first 5 wave set off the 2002 low. My experience is that this is not a problem if yesterday’s low is “the” low but any move below this point after this week (the weekly bar) would not be a good thing for future price appreciation. I expect a nice rally soon. But what is at stake is if the rally will be the continuation of the bull market started in 2002, or only an significant a-b-c correction before another big drop.
Tags: A-B-C Correction · Value Line Arithmetic Index (VLE)2 Comments
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The VLE traded to an intraday low of 1317 on October 10, 2008. This price level was substantially below the low price of October 2, 2008.
Using the VLE angles off of the 2002-2003 lows does not appear at this time (in hindsight) to be relevant for Gann analysis.
The VLE bounced off the 1×4 angle which isn’t on this chart.