Todays move might have been bearish, but by 1:30pm the impulsiveness to the upside changed the outlook on the ST back to bullish. The EW pattern also suggests with the overlapping characteristics that there is a high chance that the down turn in recent days has been corrective. Not 100% sure but we will have to see if this impulsiveness has legs to the upside. Since the ST suggest an upward bias, any short should be covered, but still cautious to the upside since we are at a higher risk of a topping market.
The CIT might be short-lived if prices continue in its impulsive move. There are a few EW patterns that could explain a bears story for the overlaps, and would look like the blue counts on the chart below in a I-II, i-ii count. This would mean a very impulsive draw down next. So if this count holds true, we would know sooner than later. As for the bulls the move higher is promising as it is being confirmed by our ST indicator.
MT: DOWN
ST: UP
PA: NA
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