Here is a link to a follow on post which was zoomed in even more. Below is the chart from that post which, if you care to check, was spot on:
As you can see, the call was pretty good to say the least. Now it has tested the bottom rail on the first wave down and bounced almost to the 50% fib. That could be all of the bounce it will get as shown in the red model OR it could go to the 61.8 fib as shown in the blue. If it does the blue then the broader markets will probably rally with it right into the end of Sept. But make no mistake, the weakness in AXP predicts weakness in the credit markets and what is more important that the credit markets if we are in a massive, historic debt Ponzi?
If this is going to play out red as shown below, it should break the lower rail within 5-7 trading days and it should do it with gusto as in a big gap down. Again, AXP appears to be leading the broader markets and that is something we will want to pay attention to when it is time to call bottoms in the coming massive bear market.
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