At its most basic level TA is all about trend....lower highs define a downtrend,higher lows define an uptrend.If you're a bear we have a High with 2 lower highs,if you're a bull we have a Low with 2 higher lows.If we make a lower weekly low this week it would strengthen the possibility that there is a 3rd LH in place,putting the bearish case on a stronger footing.2 and 3 would also be a double top.Next the bears would then need to take out the 2nd lower high over the next few weeks.
The last week of April 2011 commenced an Elliot Wave 2 Up in the $SPX at 1363, and the chart for the last week of October 2011 of $SPX at 1292 is an Elliott Wave 2 of 2 up, and the chart for the second week of January of the $SPX again at 1292 is an Elliott Wave 2 of 2 double top up, with the result that the $SPX, traded by SPY, is going to enter an Elliott Wave 3 of 3 of 3 down for the week ending January 20, 2011 when options expire. These are the most destructive of all economic waves as they for all practical purposes destroy all economic wealth built on the five waves up. This coming down wave is going to take out even the yet to be established ten toed kingdom of regional global government, at which time the Sovereign will take the upper hand and establish a world one world government, with a one world currency and provide global seigniorage.
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....you lost me a bit towards the end there ! lol
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