Friday, May 07, 2010

What's next for the stock market?

What if the stock market does what I hope it doesn't, go down below 4,000 on the Dow. But that is what the charts indicate using Elliott Wave theory. Experts on CNBC are pumping up the fact that they see the economy is growing, even though the Unemployment rate went up to 9.9% in April, up from 9.7% in March. Well the chart above is very scary and I show it for one reason, to give the reader a caution about how much of their wealth is tied up in the market. As yesterday proved, markets can be very irrational and they do not move on news. Many things are pointing to a rebound in the Futures market but watch for people selling into the move up as Volume will increase. Watch the Volatility Index VIX during the day. And if you get a chance go back in time and read some of my market posts.

The chart above points out the Elliott Wave cycles I have counted and where it says we are headed when all is said and done. This will not happen in an exact straight line and will be jagged, going up after some drop and then going lower again. FAIR WARNING!

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Blogger lijia said...

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4:45 AM  

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