Ok, let's take a look at the market...
I still remember March when I said a big rally was coming, somewhere around 50-70% in 5 months and of course nobody or almost nobody would think such thing.... 5 months after and look where we are now !
Now that we're at 1000 pts, now people want to start buying... when they should be selling. Markets work in paradoxal ways, and deceives the largest number of intervenients.
Reminder: http://jogarembolsa.blogspot.com/2009/03/s-almost-bottoming.html
So the charts I have now are, some to situate us in the very big picture and what lies ahead of us... take lines just as an ilustration of a text book structure, but it should look similar more or less...
Now, this same picture we can have 2 basic patterns of standard TA, the M figure and double top, both of which have targets around the same area on the boxes I drew in the chart...
Also take into consideration, according to EW rules the end of C should be in the price area of the previous 4th wave and as you can see C ends above... that is the case because well I'm being conservative, but textbook should end between 200 pts and 375 points, but let's just take the graph scenario, which itself is already a hell of a decline:
Now last but not least, including today's price action...
And a mid term picture...
I would also like to point you out to this... After NEWSWEEK with the cover in bold letters saying "RECESSION IS OVER" now we have this http://slopeofhope.typepad.com/.a/6a00e00989822288330120a55b7db6970c-popup
Also, IMF came to public stating the recession is indeed over... What else can a contrarian want?
I rest my case your honor
