The Greek General Index is moving upwards according to our wave count so far. The banking sector has proven a drag to the entire market but the General Index continues higher after having found support at the upward sloping yellow channel line. There is however a drawback in this specific wave count. The recent rise in prices from wave C at 758 is not a clear impulsive wave. This overlapping pattern may unfold into an impulsive wave, but until then bulls will have to be extra cautious. The sequence of higher highs and higher lows should also play an important role in an investors trading strategy. As mentioned earlier, the banking sector has proven to be a very heavy burden to this index. All in all, investors should keep in mind that after 5 waves up, a correction is imminent. Trading when the market is in wave 5 should be accompanied with strict stop loss orders in order to avoid unwanted 5th wave failures (inability to make new high). In our case however, if the 5th wave does not make a new high above 910,99, then our longer term view of a trend change in Greece will be at stake.
As always, thank you for taking the time to catch up with my thinking.