Friday, January 8, 2016
MTU Weekend Ed. - Wave E Thrust (1/8/16)
The event-driven and gap-ridden selloff during the first week of 2016 befits the personality of the wave E of a triangle (Chart 1). SP500 is due to deliver a second death cross early next week, following a short-lived golden cross (Chart 2). Furthermore, most benchmark indexes have now breached their August/September 2015 low, with the exception of the very large cap indexes (Chart 3). But a low, if not the low, is in sight (Chart 4).