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


Thursday, 26 September 2013

26 Sept 2013

The patterns forming lately has been corrective and EW works well to tell us that whatever is happening is a consolidating pattern that will continue lower in the days or weeks to come. 3 waves followed by 3 waves that overlap.  This is a good setup for the bears, and how far it will go will depend on the indicators. 

The EW pattern suggest the end of day impulse up would be a wave C of some sort.  Whether that is done can be seen in tomorrows price action.  I would like to label this ending pattern as a 2, but it is not important right now.  The important thing is to set up for a short position.

I am expecting an acceleration of some sort, and tomorrow is a time fib of 34 based on the May 22 high.  So lets see if markets will react and acceleration is what we see.

Main-Trend: UP
Short-Term: DOWN

Note: Our intra-day signal is in an upward trend and could indicate that the impulse from todays end of day run up is not done.

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