Puente del Alamillo (a beautiful bridge in Spain)
I am rather bearish based on my hypothesis that the strong market run since 2009's low has ended. Wednesday rebound can be the mini wave 4 rebound. I am expecting further decline to complete the mini wave 5, to mark the end of sub-wave i. If the market really moving along this path, the next rebound, sub-wave ii, may climb 2% to form a 'Head and Shoulders' pattern before the starting of the next down wave, the sub-wave iii, that can drop at a steeper gradient.
This is only my hypothesis, I can be wrong.
The initial stage of a downtrend can be quite harmless. Some stocks will continue to surge to maintain the 'safe feeling'. However, most stocks will slide slowly and quietly without getting any attention until they have dropped quite substantially.
KAL's Cartoon
Courtesy of The Economist
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