Wednesday, September 15, 2010

9/15 3:00

The potential for a 5-down is contigent on SPX holding below 1122.85.


  1. Hi Steve,
    I've been following your site now for a little over a week, very interesting. My question is in regards to your I1 indicator, are the components all technical?

    How does it handle reflation QE lite? I know Elliot Wave Theory is supposed to take in all human behavior (gov't market manipulation included), but can I1 be accurate even when it seems there is endless manipulation by our central bankers via liquidity injections to this mkt?


  2. None of the I1 is technical. It made use of market data only during the correlation phase of it's development. Since then it ignores market data. It is predominantly solar-lunar and forecasts of environmental data. Fiat manipulators can succeed only for brief periods, then their actions come back to haunt us (not them). So for a period of a few days or a week it is possible to defeat I1. Bernanke lowered rates by 1.5% at a single FOMC meeting, making hash of anyone's approach. That is an extreme, but we have just had an instance where I1 says deflate but the manipulators say inflate.