[BKX] update

In the backlink we were working on E of 4, expected a move back down into the HT channel soon:



Current snapshot says we are still on track for this.  E of 4 popped a bit higher than modeled above but now looking at it we see that it was formed by a 3 wave move from D of 4 where C of E is about the same as A of E.

Following that it went 5 waves down to poke back into the body of the HT during wave 1 of 5 but could not hold the loss and so bounced into 2 of 5.  Being that the next wave should be a 3rd, we should not be surprised to see a gap down as shown as wave 3 plays out.  Eventually it should work lower than W3 in order to finish 5 of 1 if this model is correct.

If that happens, the bear market is confirmed from an EW perspective.  I think the chances of this happening are high.  The market would then be bottoming around the time that the fed meeting minutes are published and since the fed is little more than a cheerleader for the debt based economy, expect them to say cheery sounding things for market participants.  This would provide the basis for a 3 wave move up that is already built into the count as red 2 below.

After that, the model expects a rapid and scary decline for the banks.  Since the banks are the energy source for the debt Ponzi, when banks go down the markets will go down.