Starting it off.

There it is! Look at that pop on the reopen right into the first area.

Bearish ABCD with an ABCD in the BC leg. Now we see. I'm pretty sure what we'll see is that this is a 'W3' not a CD leg. But, 'we'll see'.

1.1160 area may stop it and send up again. Just watching now.

1.1100 next

Chart for this area:

target for ihs hit at the .786

iwm potential bull trap at x marks the spot, where bear abcd ends at .447:
123.67 – 108.26 = .447 at 115.15
115.98 – 111.60 = .786 at 115.04

This thing is sooooooooo set up to roll over and start a hard-core 'W3' down, with all of what we had down so far being the 'W1'. That would put it in the low 1500's. The ABCD area on the way down would be around 1700+-. I hope it happens, as it would be a nice start to a real bear. It could also happen swiftly on some news, then bottom right there, bonds will get their last pop, then it all implodes like Armstrong says, and stocks double. He says the minimum is a double off wherever they bottom. This way the ES can get well into the 3000's, as he said long ago. My sense is that it's just teasing me and we won't get much more downside than a 'retest' at best. Regardless, this is some exciting trading. I don't really care what it does, as long as it moves.

If this is a truly hard-core bear, then the completion point might be low to mid 1300's. That would be about a 37% drop, a nice, but not extreme bear. Let me dream. In 'the old days' it wouldn't be a dream, just a fact that we have bull and bear cycles. But, it really may be different this time, since they have things so F'ed up.

I count on that move as it would imply a sharp surge in the Euro, which, I believe, is set up to make its final, huge advance before the collapse into 0.85.

Originally posted by jimkane

This thing is sooooooooo set up to roll over and start a hard-core 'W3' down, with all of what we had down so far being the 'W1'. That would put it in the low 1500's. The ABCD area on the way down would be around 1700+-. I hope it happens, as it would be a nice start to a real bear. It could also happen swiftly on some news, then bottom right there, bonds will get their last pop, then it all implodes like Armstrong says, and stocks double. He says the minimum is a double off wherever they bottom. This way the ES can get well into the 3000's, as he said long ago. My sense is that it's just teasing me and we won't get much more downside than a 'retest' at best. Regardless, this is some exciting trading. I don't really care what it does, as long as it moves.

Bye-bye, Euro. Bye-bye.

http://www.armstrongeconomics.com/archives/36850