A few observations on an Elliott Wave corrective wave (2) Low
Wave 2 often retraces most of wave 1’s upward move.
Often a sharp decline.
Fundamentals remain negative, perhaps less negative.
At the bottom, investor psychology is usually more bearish and negative than at the
beginning of wave 1, creating a positive divergence between momentum and sentiment.
The bottom of wave 2 is the safest entry point in the cycle.
Note the current higher lows in the Us and Canadian financial ETFs - The 2007-2008 financial bear is history
Bill Carrigan
Wave 2 often retraces most of wave 1’s upward move.
Often a sharp decline.
Fundamentals remain negative, perhaps less negative.
At the bottom, investor psychology is usually more bearish and negative than at the
beginning of wave 1, creating a positive divergence between momentum and sentiment.
The bottom of wave 2 is the safest entry point in the cycle.
Note the current higher lows in the Us and Canadian financial ETFs - The 2007-2008 financial bear is history
Bill Carrigan
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