30 July 2014

Prices have close below the said trend line support. It has also closed below the 200ma on the 60min chart.  The last time it closed below the 200ma line on the 60min chart, we urged people to watch a straight closing below it for at least 3 hrs before a confirmation that it would go lower, but it did not and ended up gaping up the next day.  This type of analysis would apply again and we need to see it close for at least 3 consecutive hours.  The EW count from the high on a bearish scale could count as a 1-2, 1-2.  With this scenario, we would see things accelerate to the downside.  The bullish alternative is that we have seen an a-b-c retracement and ready to move higher.  Nothing has changed from our indicators and have retained our short position.

MT: DOWN
ST: DOWN
PA: DOWN