mongombolo's - deep penetrations - wednesday, page-14

The penetrations happened last night, alright, but the question is, how deep is deep?

Is the dreaded "C" wave underway?

Well, from my perspective, the boys have cried wolf at every dip and they have ALWAYS been wrong. Are they wrong again this time? I just ignore them.

The SPX has double bottomed with the March 2011 Japan Tsunami low. RSI is at GFC lows. But Stochastic at 11 is not quite at those lows (5).

Dow Jones Industrial Average...RSI and stochastic at GFC lows.

The move down is equal to the Tsunami one into March.

Rather than looking at C waves down into the abyss, I have these scenarios:-

-A bounce from here.
-Down to the next likely levels as per chart, including 11,000 which is the 500 day sma.

In summary, indicators are now at levels from which we have seen prior rallies, including March 2009, the GFC low.