User: TWT: LONG TERM EWP: IBEX: Follow Up of the Long Term EWP | The wave trading

No Change of the long-term count (Last update on January 11)

The cardinal idea is that price from the November 2007 top is unfolding a Double Zig Zag = (ABC=W; X; ABC=Y)

From the 2007 top we can segregate the pattern into 3 sequences:

The first Zig Zag was completed on March 2009 (ABC = W). The wave (X) was established at the January 2010 top. From the January top price has unfolded the wave (A) of the second Zig Zag with a complex Triple Zig Zag. The bottom was estblished on July.

Therefore if the overall count is correct price has embarked in a countertrend wave (B) that eventually will be badly sold. Once the wave (B) is in place the long term down trend will resume with a wave (Y) down that could match the length of the previous wave (A) = – 6335 points.”

In the next weekly chart I show my preferred count for the up leg from the July low, which is a Double Zig Zag.

This Double ZZ should have established the top of the wave (A) at the February peak

The current pullback should establish the bottom of the wave (B) maybe in the range:

7539 (Equality target if the pattern from the February high will be a ZZ) – 7490 (November low and lower Bollinger Band)

Once the wave (B) is in place I expect the last wave (C) up that will establish the top of the second wave (B) of the Double ZZ from the November 2007 Top.  The next directional move should be a substantial decline.