(Click at the pictures to enlarge)Oil broke it - the support line and thereby confirmed that red wave [B] from mid-December 2008 has finished and red wave [C] with and ultimate target below the finish point of red wave [A] at 32.40 will be seen.
How does that fit into a picture of a global economy gaining strengh as all the talkning heads on the news, CNBC and Wall Street analytics claim - IT DOESN'T!
Take a look at the Baltic Dry index, which top out early June. After topping out at 4,291 it has fallen 49.68% to 2,175. The fall looks very impulsive and follows the wave counts nicely.
Ultimately we should see fall below the ending point of red wave [A] at 672, but it will find strong support at 1,796, where red wave iii will be 2.618 times red wave i, but I wouldn't be surprised to see it continue closer to 1,441 before finding strong support.
Also take a look at this article from the Daily Mail:
When I went to Athens on vacation this summer I saw the same, amited to a lesser degree, but at least 20 major vessels was anchored up outside the habour of Athens. I wounder how many vessels are anchored up the same way around the world.
In my eyes this does not resemble a global economy growing again. What we have seen since March is Government bailout packages and quantitative easing from the central banks floating the economies with liquidity, which has found its way into the equity markets and some commodities, but by the first word of withdrawing is support, the market turned around.
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