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

PAYPAL

Tuesday 8 December 2015

8 Dec 2015 - Corrective Patterns Abound

The price move today fits with our ii-wave count or a continuing pattern that would finish a d-wave.  Perhaps these indecisive formations is a prelude to a bullish rate hike sentiment.  At least this is what it's looking out to be.  But we should also be reminded that an E-wave could end this rally without making an new all time high.  This would make it a very bearish setup and outcome.  Of course this is still a ways away and it's pointless to think too far.

The price closed below the 200 day MA today even with the rally we had from today's low.  The ST is suggesting that trend is still down.  If this is true then the 3 wave formation we are seeing is not really a 3 wave formation and that more extensions should be added tomorrow.  So far though, the triangle theory is holding up against our ST.

SEN: Bearish
ST: DOWN
PA: NA


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