Even with the excitement generated by the FOMC, the two factors I have been discussing over the past few days once again came into play. The market saw resistance in the form of both a tight cluster of Fibonacci ratios related to the “a” and “b” waves of the current zigzag; and, the old “0-b” trendline drawn across the October and December 2007 highs.However, we must still wait for confirmation that the zigzag pattern is complete. And after the zigzag? The wave principle allows for two scenarios: An “x” wave or another corrective pattern. The former would not see the market decline below 1324 while the latter could retrace the move up from March 17 almost completely.
My next post will be in about a week.
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