Looking for more lows!

It is my personal view that wave [V] down has indeed started.  However, at this juncture, I am not sure if it is the final move in the intermediate [(3)] down, or the last stage of the infamous [3] of [(3)]. Either way we would expect some more consolidation after the move is complete.  My view is that the move is most likely [V] inside of [3] of [(3)], due to the lack of divergence on the daily chart.  I will be watching closely for a divergence on BOTH the daily and hourly before I think the decline is done.  Right now, I believe we are almost complete with wave [i] down of [V] of [3] of [(3)].

For anyone that does not believe in Fibonaccis, take a close look at the past 2 charts.  Notice how the fan I have drawn acts as support and resistance at almost every single major pivot.  I am looking for a 400-600 point rally coming in after another low.  This rally would be either wave [ii] or wave [b] of [D] of the triangle (which I find the less likely count).

The breadth on the past 2 days has been 9:1 (or more) negative, and with selling volume absolutely crushing buying volume.  My view on this is that the breadth most likely indicates that this is still an impulse wave down, and not part of a corrective move of any sort.  We shall know soon enough, but the final piece of evidence that supports the wave [V] down scenario is that we are falling in 5s.

Here is a little chart of FSLR in case any of you missed my thinking on this move.  I sincerely hope you all cashed in dearly on this, as it has been one sweet move….so far.  More to go?  My targets are working their way down in $10 increments, projecting a final low into the low 90s.

And this is the same thing on MA.  Entries at support (resistance) and exits at resistance.  Final target on this puppy is into the 110 range.  Now don’t go bonkers here if you have missed these moves.  MA would offer a great entry around 150, or even better at 155 as there are very strong resistance levels there.

That should do y’all for tonight.  Expect a nice rally after those horrible  economic numbers tomorrow.  I will be fading it as soon as I seen waning momentum.

Skål!