...but it happened. It took all day, but with the market unable to carve out a lower bottom in the afternoon, buyers poured in just after 3pm and we got the turn that so many the world over were looking for. A lot of people thought it would happen soon, but only Andy Askey called the timing of 10/10/08
months and months in advance. Really we shall see late Sunday when the futures market opens (we need to see a gap up open), but I'm 80% convinced. Please note that Andy and I have differing Elliott Wave counts. My next post will present the long-term wave count as I see it. Meanwhile, the picture Friday for the Dow:
The chart of the inverse ETFs is even more convincing. Take a look at the one-month QID.
The five waves from 9/19 are stark, with a complex wave 5 beginning on 9/30. The magnitude of the drop late Friday—in terms of how much it fell and how quickly—is on the order of a Wave A. No champagne yet; we could easily see a kickback rally back to the QID 82-88 area in the coming days, probably (fingers crossed) after some continuation of that late Friday afternoon move. Any such rally should not exceed Friday's peak; if it does, my count is wrong.
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