Posted by: stockscooter | February 15, 2012

S&P 500 Correction is Highly Probable

It looks feasible that last week ended the third wave advance, which began November 25th, 2011. The chart below shows the 5 wave, wedge-shaped advance. Moreover, the top two proprietary indicators that have yellow circles are about to cross downward. The bottom indicator window is typical of a bull run that is culminating, and most assuredly will lead the down-turn. And lastly, we have two candlesticks (blue circle) that are indecisive. These doji/spinning top candlesticks occurring after the long green bullish candlestick is very bearish in my humble opinion. The caveat here is these are weekly sticks and the week ain’t over! If we close this week above 1348, it would indicate that this wave is still advancing upward, which would cause no crossing of these indicators.  As with any candlestick chart, we must wait for the period to complete, which will be Friday.  This is just a heads-up until then.  Be careful out there!

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