Over the years, the one aspect I have always found fascinating about Objective EW, is that time and time again it proved that the fluctuations in the stock market are not a random series of events. But a well orchestrated geometric progression of time, price and pattern. Usually, one can anticipate bottoms to corrections, by comparing what has already occurred to what might occur to conclude a perfect EW pattern. I feel we are about to experience one of those events! Wave C appears to be declining in a simple 5 x 5 zigzag similar to wave A: a = 37 points, b = 14 points, and c = 53 points thus far and still ongoing. Notice that c might = 2 x a (or 74 points) a typical fibonacci relationship. If c does indeed equal 74 points, upon conclusion, then the entire decline of wave C would equal 97 points. Exactly the same as the larger wave A above! And the closing level of this entire decline would be COMPX 2086. For details see the link below...this could be a MAJOR buying opportunity: similar to the August '04 bottom, where the market advanced 24.3% in four months. http://spaces.msn.com/members/caldaroEW/
No predictions here, just potential scenarios. I don't see a market bottom yet. Sure some sectors, the next leaders, might have bottomed already. The COMPX looks pretty good, but the INDU and INX are still not oversold enough. Maybe next week. What sectors are you seeing bottoming?