by Avi Gilburt, ElliottWaveTrader.net
Monday November 5th 2012
It always worries me when I am unable to see a bullish count on the chart. However, right now, I struggle to see a bullish count. Therefore, it only leaves me with downside possibilities, some which are quite striking.
At this point, the market seems to be setting up for another downside move. The major support on this downside move is the 1386ES, which is now the 1.00 extension of what we have labeled as waves (1) and (2). If that level breaks, the trap door will open and the market will head down to the 1365ES level in a hurry and may not even see an appreciable bounce until it hits 1340. Ultimately, this larger brown (c) wave in the larger yellow b-wave flat I have been mentioning for months will take us down towards the 1300 region, and may even revisit the June lows before we begin our final rally to the 1570 region.
So, stay tuned, the next few days will be very interesting.
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