We have broken the smaller channel support to the downside. Although we have been in the same trend line since the New Year struck, we are still within another larger overall trend which is up. I do believe that the focus is going to shift to down as I have been writing.
The next couple weeks will tell me for sure where the market is heading. We are at a crossroads in the markets, and sentiment doesn't do a snap change over night especially when nothing chaotic has occurred. This is why I have labeled the latest up trend with 5 waves and to a larger degree, those 5 waves could be an extended 3rd wave of 5, or it was just an impulse 5 wave move to finish the last leg up. The stock market is at a crossroads like I said, so I would continue to be patient and let the market work for us. It's great that the market is rising because who doesn't love more money in their retirement? I know I do!
People say, "The stock market always goes back up!" Well I say to them that we are now in a different era. Any one person who studies Elliott Wave Principle will understand that we have reached a certain point in our lives where things are not exactly fundamentally sound like we once thought. In fact, things are quite grim underneath the surface. People love to put their heads in the sand though as long as they're making money. They think that it will not happen to them, but without proper due diligence(studying BIG BANK forecasting material(Elliott Wave International)), people won't have the slightest clue as to how large or long of a bear market we will be in.
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