Monday, 7 May 2012

3rd wave down in progress.....or just a C?

 S&P broke our support at 1375 on Friday. I mentioned that April 10 lows will be tested if 1375 was broken. So the first signs of a 3rd wave down were given. Greek elections, the new French president and fears over europe's future...pushed NIKKEI -2,78%  and S&P futures below the April 10 low. If this is just a correction the most possible target is around 1310 cash (161,8% of A). Another possible target is 1350 cash ( wave A=C). If this is not a correction, we are in deep trouble....

EURUSD from early Monday morning is testing very important support levels. Fridays break of 1,31 was a first sign that pressure was strong against euro. If this pair remains below 1,30 for more than 2-3 hours we could see the decline to accelerate.

AAPL is next as most of you who voted wanted me to analyse it. It seems like we are in a bigger correction pattern here with targets at least near 500$. If it manages to overcome 620$ it will probably have started a new rising move. However it is more probable that trend has reversed specially if 555$ is broken. Inability to move above 620$ reflects weakness.

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