2nd waves are ''reinforcement'' waves that seem to confirm the overall feeling of wave 1. In this example, those who suggested that more downside was coming during wave 1, will come back to those same people and say ''I told you so''. The other characteristic of 2nd waves is that the level of anxiety will generally be more acute than it was prior to beginning of wave 1, but now at higher price levels that were seen at the actual bottom. Because of this, retracements will tend to be deep. Technically, the tools mentioned above would be snapping back to what were the breakout areas that confirmed a possible change in direction in which took place in wave 1. All of this action is in spring board preparation from which 3rd waves begin.
"I told you so"
Now, where have I been hearing tha latelyt?!
One "wonder to behold" coming up shortly
Edited by Remo, 29 August 2007 - 06:12 AM.
