Things Look Dimmer
I was not much enchanted with the appearance of the market yesterday. Everything looked rosy right after the market opened, when it escalated nicely; and I thought we were going to have a good day. But matters slowed way down after the lunch hour, and then began to snowball downhill at an ever-increasing pace. At the end, even though the indexes did close higher on the day, the coursse which they traveled in order to get there leaves one very skeptical that the bubble, or bounce, which we are in can continue much longer. Actually, the Japanese Candlesticks patterns beginning after lunchtime and which persisted throughout the remainder of the day are quite bearish. We can expect a rebound today in a typical three-wave pattern; but after the third of the three waves is complete, my guess is that the markets will turn lower and before long we will see prices below the lows of yesterday. It may be that this will be the beginning of a very large downhill third wave which will be quite devastating in its removal of wealth.
