My Current Guess…
The long term bull market from 1982-2000 has corrected with an A-B-C pattern. Price is now at the 50/50 point of the long term range which is equilibrium. Because price and time are balanced the next move can go either way. I am leaning toward the up side with a chance of testing 666 to the 1×4 angle.
A closeup of the A-B-C correction . The B leg lasted twice the duration of the A leg. Assuming the low is in, the C leg was one-half the duration of the A leg. At a minimum, it is clear this move is cyclical.
The Dow Jones Transportation Average (TRAN) broke above the 1×1 decending angle approximately the amount it broke below the 1×1 ascending angle. This index is not in a bullish posture but the 50/50 point is close above and could draw price back into equilibrium.
The Russell 2000 (RUT) index is not in bad position with price at the 2×1 ascending angle which means the current move is twice the slow of the bear market.
Charts courtesy of Stockcharts.com
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Tags: A-B-C Correction · Dow Jones Transportation Average (TRAN) · Growth Stocks (RUT) · Market OutlookNo Comments
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