Today's weekly Gann Swing Chart, below,
shows one of the better "possible" 9 wave swing patterns that we have seen
in "awhile." Based on "the low" for the summer of 2006 being that low near
7/22/06...WHICH may or may not be the case?
IF this "nine waver" works out "about" as shown,
AND "actually completes a major wave up," then a drop to the 1361 or 1327
area would be most likely to follow..."after" a tag on "about" 1446.
However, we must also be fully aware that this
is where a 5th wave extension would typically come from, or even a double
subdivision where this next minor top would only be wave "i" of (3) and not
the major top of ((1))...or the major top of anything...like 2003-2004 IF
this rally turns out to be a "re-run" of that long rally up.
WHILE we will continue to rely on the DAILY MSAR for our actual trading
signal, I suspect that only SPX going below 1320, and/or DOW below 11,950,
would ring any bear alarms.
OH! DON'T FORGET! There is also a lesser possibility that
the 8/12/06 low was the actual summer low, and NOT 7/22/06, such that this
rally up has already finished 5up, on or near 11/25/06, and is already working
an irregular flat down as a mini bull trap...see it?
Also keep in mind that any wave (4) here, as is clealy "possiable" for the
12/2/06 low, SHOULD be, or should have been, a "double swing," since the
wave (2), assumed to be made on 8/12/06 If this is a nine waver, was a single
swing down...by Elliott rules and not Gann's.
