Minyan Mailbag - BKX
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Check out the PnF support level at BKX 101. Given TRAN breakdown, SOX breakdown, RMS breakdown, this looks like Hoofy's best hope for a turnaround. I've mentioned that I believe financials will lag the market breakdown because they are key component of (what I believe is) misplaced optimism. When (IF) they break, however, it is very possible that the point of recognition we've all been waiting for will accelerate rapidly, and this thesis I believe fits with the PnF indicators as well as (I think) Scott's analysis of potential wave III move down.
After putting in a new peak in a 5th wave off the 2002 lows, this index has just put in a "5" wave move down on the hourly suggesting at least another similar decline (3.5%) or greater once this impulsive pattern down from the 12/23 peaks bounces up in a correction from around current levels. For now all the pieces are in place for a completed pattern off the 2002 lows and the hourly trend is decidedly down. We would get one more new peak AFTER an ABC decline (the A of which is now completing) but that's a low probability. Better interp is that this index like the others is finished with its all-time bull market and that much lower numbers lie ahead in 05, though just my opinion and not advice.
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