Thursday, 27 August 2009

Weak prospects pt IV

I am sorry I cannot think of a more original title!

Markets are in the process of topping, and I don't think there is long to wait now.

I believe we are now in the process of building the final, fifth wave higher in equity markets, as illustrated below on an hourly chart of the SP500 futures. For SP500, I expect the top to form around 1040-1050 level.

Weakness should be respected, and trading below 1000 ought to be taken as the beginning of a meaningful move lower.

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