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

PAYPAL

Friday 15 November 2013

15 Nov 2013

As prices continue higher, the less likely it is that we are seeing an ABC pattern forming for a B wave.  Our angles continue to be a magnet for prices and it seems we are looking for higher highs to establish the next resistance just above 1800 level on the SPX.

Main-Trend: DOWN (Confirmed)
Short-Term: UP

The discrepancies to the main-trend lies with volatility and even when confirmed it is still in overbought territory.  This is typical behaviour of price volatility vs. indicator.  The only resolution to this is a neg. divergence or an exit out of overbought range.

 
 
 
 
Another count which I prefer as a major count can be seen below... and although a favoured count over other EW counts, we should always follow our trend indicator.
 
 


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