“Those who have knowledge don’t predict. Those who predict don’t have knowledge.” Lao Tzu, Chinese philosopher, 6th century BC

PAYPAL

Monday 5 November 2012

5 Nov 2012

Looks like our 60min Stoch. has crossed up from its oversold range, but the EW pattern does not look complete in a bears perspective.  On a bullish perspective this 3 wave move down so far from fridays peak is what we needed to see.  The only problem now forthe bulls is that todays rally also produced a 3 wave push up and could be a 4th wave rally with 5th wave still to come with lower lows.  Will we rally after the election tomorrow?  This is probably what Im leaning towards.

One thing to note is that our weekly spx stoch. have been on a downtrend but has not entered bearish territory.  For 3 weeks now we have been hoovering above it and if we want more bearishness we need to break to the downside.

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