tumbling tuesday, page-183

2910

Yes, a capitualtion here is not necessary.

While a capitualtion is typical of the major move down such as happenned in Jan, the retest phase, which can be a slightly higher or lower low, is usually less volatile and more a matter of time.

US retests seem to have a minimum of 6 weeks up to 4 months, with the usual Gann suspects of 45 cal days, 60, 90 and 120 being candidates.

For those who see further time to the downside, the latest US housing numbers adds some weight.

Not always, but often there is a neat 12 month lag between the upper line of numbers in the chart below and the equity markets.

If that happens then towards year end has much merit as an equity low. It is important to note that the corellation comes and goes.