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

PAYPAL

Monday 23 February 2015

23 Feb 2015 - Inching Closer?

I pose "Inching Closer" as a question due to its wedging nature (Chart Below).  Also the fact that we have been in a 2 month consolidating style trend.  A consolidation phase ends when price has broken through the previous pivot high.  This is all that's needed to fulfill a level high.  Prices do not need to go higher, but we are still in extreme overbought condition and higher high prices are a big possibility.

As an EW'er I can only say that the Feb. 2015 low is the key for bears to overcome.  Unfortunately for the bears it's 30 SPX pts lower.  Quite a move indeed, but if the bears story that the top is close.. Then the move lower will be swift and fast.  We shall see.  We do not need to speculate here as the indicators are OB.

MT: UP
ST: UP
PA: UP


1 comment: