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

PAYPAL

Wednesday 19 February 2014

19 Feb 2014

The ST has turned down for the moment but still in overbought. Therefore the we would need to watch the intra-day performances in the next day or so to gauge the seriousness of this trend reversal in the ST.  If one does not have access to the intra-day charts, you can look for the 1809 level as the critical price to break or support.  The current EW pattern shows a 3 wave, and we don't have any clues to whether it is still continuing lower or it could reverse.  So tomorrow and the next few days will be important.  Respectively, the last low made by the SPX at 1834 is important, and for the bears they need to see 5 waves down for it to see a sustained bear sentiment.  If we push above 1834 tomorrow without the 5 wave pattern down then we are still in a up phase.  Things can change day to day so we should watch for it.  Another alternative is that a 1-2 1-2 could occur but this is also a bearish pattern that allows the 1834 to be breached.

MT: UP
ST: DOWN (Still OB)
PA: UP

Gap has been closed... and now for the lower gaps and there is tons of them stretching back from 2013.

A few things to note below is the Fib ranges and the angle clusters that are converging for next week.  This is one to watch if prices comes close to the price range.

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