Friday, May 15, 2009
We have been nursing this Weekly chart of the S&P 500 Index since the early March, 2009 major low in the index. As the Elliott Oscillator on the bottom of the chart indicates, the oscillator has finally reached the zero line.
At the same time, the False Bar Stochastic, shown below, has crossed over while in it's overbought area.
Finally, on the chart below, I've attached the Blue Wave Precision CCI to the bottom of the chart. To make a long story short, just look at the position of the CCI indicator now, compared to the last time it was this high and turning down, circa Summer of 2008, the kick off to a 50% drop in the S&P index.
Is the Wave 4 top in?
I don't know. My suspicion is it is going to take one or two more Weekly bars, right up to touching the top channel line, maybe even breaking above it for a day, before Armageddon, Part II is triggered.
At this point in time and space, we are close enough to a Top, the Top, to take seriously all shorter term Sell signals. We don't have to catch top tick, just get ready to jump aboard that southbound train as it is leaving the station.