Thursday, 20 August 2009

Not yet

The bears' time has not come yet.

As mentioned in the last post, I was not happy with the way this decline started. I am now leaning towards a scenario where we make another high, and then come off hard.

Below is an hourly chart of the Banking index (BKX). I believe it is attempting to break out of a fourth wave triangle, which means that it will "thrust" higher about 10%. Needless to say, this means that the broader indices will proceed to make new highs.

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