(Click at the picture to enlarge)After a very nice rally from the November 2008 low at 47.41 to the August 9'th high at 170.94 a top is now in place.
The 61.8% retracement of the fall from 250.70 to 47.41 came in at 173.11, so it was and almost perfect 61.8% Fibonacci retracement, but the break below 157.90 yesterday closed the case, the top was firmly in place with the 170.94 high.
We are now resting at the wave ii - iv supportline, but I expect that to be broken soon for a continuation down to the 135 - 137 area, before a more serious correction can be expected.
Longer term I'm looking for a break below the 47.41 low to finish the A-B-C correction down from 250.70.
I have the outmost respect for Warren Buffet and Berkshire Hathaway Inc., but I just read that half of the seconde quarter earnings came from derivaties. I do hope that Buffet sold some of his warrants or shares in Goldman Sachs during this rally otherwise the earnings in third and fourth quarters could quickly change.
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