Crest of the wave. Downwave starts.

Posted on Jan 28, 2011 by WHC Bassetti in Letters

After 41 days of glacial drift upwards and (including today) 2 days of downdraft it looks like the wave has crested. And this would appear to be the undertow day. There is no way on earth (maybe in the stars or the spheres) to know how severe this wave will be. There is some fairly serious support at 11433. We think the likelihood of a major trend reversal here is negligible. the purpose of this downwave is to punish the public which has been getting out of bonds and back into equities. So probably 5% or so will be sufficient. The technical reason for the downwave is that there hasn't been one for quite a while, added to which 12000 is a numinous figure.

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