Trouble Ahead, Trouble Behind
The market keeps on truckin' downward. The Dow broke the key 10250 level today intraday, which means we are in a serious wave 3 down for the next few weeks and maybe months. As always, it will bounce back on the way down, and a little bounce is due tomorrow. But down we go into the summer.
Prechter sent out yet another interim bulletin with his mea culpas for his prior impulsive bulletin. His point is that the minor wave 2 we were in broke the 78% retracement level, which almost always means it will keep retracing farther, but it stalled twice at a 90% retrace and then turned down. Technically a wave 2 can retrace 99%, it just is rare to go beyond 78%. This market has seen multiple wave 2's go back 78%, as the mania is dying hard; so a rare 90% retrace is now par for this course.
