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HARMONIC ELLIOTT WAVE

Friday, October 14, 2011

Flip of a coin between continued consolidation or Dollar losses…


The market made a decision yesterday to take a day off from selling the Dollar. It has probably done the minimum required to complete a correction. Today the decision is between repeating yesterday’s price action and resuming the selling.

So which is it to be? It’s probably a flip of the coin to be honest. There is certainly nothing stopping the market continuing down the slippery slope. Perhaps it’s more whether they really want to make the effort before the weekend.

If I have any preference I’d vote for another day like yesterday. I can’t see that the U.S. indices have corrected far enough. To be honest they’re in the same boat in terms of having made the minimum correction but in normal circumstances a deeper pullback would balance out the extremely direct recovery from their lows.

Therefore it may well be a day to take it easy and wait for fuller retracements to develop across the board. Also look for the signals to correlate across the currencies with some solid trade set ups that should then set up the foundation for losses to develop over next week.

Have a great weekend
Ian Copsey

HARMONIC ELLIOTT WAVE FORECASTS NOW AVAILABLE FOR U.S. & ASIAN INDICES

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