It is nearly impossible to have all the extensions right in such a panicky environment. Will make them as we go.
There is a good chance for this Minute 3 to have bottommed, or may be not :)
@ 11:30 AM
A quick look at the Italian stock market.
Peaked in May 2007 @ 43,947. Dropped 72% to 12,332 in Mar 2009.
Nearly doubled in P2 retracement to 24,551, which was a single zigzag.
A leading diagonal can be seen for (1) down, (2) retracement and now is in (3).
Has declined 36% from the P2 peak.
It shows how the SPX is behaving differently than a market with parallel sovereign debt issues.
Italy does look like a market that is in P3.
The US downgrade is nearly a non-event for the bond market.
For P3 in the US markets, the bonds will have to come along for the ride.
Minuette iv can be counted as a zigzag flat combination correction.
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