The Euro & The Waterfall Projection – Judgment Day

IBEUUS-W Pi Waterfall 1-24-2015


We have not seen a Waterfall Projection on any market in years. All of a sudden, it showed up in Euro and in Oil. Those who have been with us for decades will notice that the projection for the high was virtually a perfect formation at the top of the circle based upon the Pi derivative. That meant we should have then stayed within the circle forming that sharp curve (Waterfall) that will then rush to the bottom of the projection. Note we fell and supported perfectly on it, bounced for one week and then fell out of bed pushing through the bottom of the Pi Cycle projection. You cannot get any more bearish than that for the future long-term.

The confirmation that the forecast would be spot on came the week of June 9th, 2014 when the Euro turn NEGATIVE on a Energy models. The inability to mount a recovery warned that the Euro was in a real FREE-FALL to complete the Waterfall. Then there was the technical break of the Uptrend Line (green previous chart). You just could not provide a clearer signal that collapse was eminent.

If the polls are accurate, Greece is on the verge of electing the first anti-austerity party in the Euroland. If that happens, Greece’s future will once again be uncertain and we can bet on increased volatility in the months ahead. Our model is warning that there are critical points here. A simple yearly closing below 116 is confirmation of a bear market. Then our targets were 113, 105, and 85. The collapse to 1.1115 with the closing at 1.1209 was longer-term bearish. However, this does not imply a further immediate collapse. A closing below 105 was needed for that.

But the election will be judgment day on how Europe will survive long-term. This financial and economic crisis is the result of academics and lawyers assuming that power can merely dictate to the free markets. Sorry, the Russian had to figure that one out for itself. Centralized government economic planning just does not work. Their own self-interest prevents economic management from working.

Full article: The Euro & The Waterfall Projection – Judgment Day (Armstrong Economics)

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