Wow, it is nice to get into the full blown technical analysis again. The market had an initial spike up and is correcting now. While I look for the market to short-term go lower, I think one more rally is in store before investors should bailout completely. S&P 1364 is the final best target for a wave 2 bounce unfolding in a three wave pattern. The market is in a B wave down with a C wave equal to the first move up in store. A big crash down is likely after that. Interesting timing as the market may rally on the Greek election news next week. As far as the next target for the S&P 500, my initial calculations project it will be a minimum of 19% to the downside. So, if you are conservative, you may not want to wait around for a few points to the upside!
The domino's continue to fall with Cyprus asking for a $5 billion Euro loan from Russia. Why wait to have the IMF approve a loan, when you can go straight to one of the nations with a surplus. I think the request is really interesting. Cyprus also has a better debt to GDP ratio due to a social security surplus of $ 7 billion. The country has a total debt of $17 billion and subtracting the social security surplus drops the total to $10 billion. Who does that sound like? You guessed it, The United States.
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