Here I would post a few possible scenarios for the coming weeks.
The 1st one has been my primary count for quite some time and I won’t change my mind until the previous high is taken out. So next week is really critical in judging the big picture to me. We need to be flexible in the market, but we need to have principle as well. When many signals conflict with each other, there is something you need to stick to.
If my picture is clear, there is a very high chance we fall from here directly. After revisiting last session’s peak in Friday, it really looks like a short squeeze to me. Many stop orders are set @ key pivot point 912 and a sharp popup triggered all these orders… There is another possibility that we have having a diagonal consolidation here and that take another one week or two hanging in the 890-930 zone. I will update the chart once that one plays chart. Usually diagonal consolidation occurs @ wave 4, but in wave 2, it indeed happens in rare cases.
A bullish count is listed below. Again the previous high is the key to watch to validate this scenario. There are some key levels to watch if this scenario plays out and i will update them when this happens. I give a 10% possibility to the upward breakout. :)
I will not update more charts. there are already tons of bullish chart online there, like “XLF breaks out!” and “200MA coming”… Have the big picture clear and make the trade when set up is there.
1 Good Insights:
thanks, you offer clear insight with no bullshit, something commendable in this era of selfserving blogs. I have been reading a few weeks and am surprised at the lack of comments. Please keep up your good work.
Art.
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