13 Aug 2013

The markets are still in a range, and the trend usually continues once the sideways trend is over which would be to the downside.  Our end of day buy trigger from yesterdays analysis was spot on today but not without a morning whipsaw action.  The H&S pattern on the 60min chart is still holding, therefore we should be weary of a market breakdown.  This week is a critical week, so I would not be surprised if we get some big reaction to the downside.  The EW count seems to also be putting a corrective attitude that could resemble an ABC for a B wave or a 2nd wave being the most bearish scenario.

Main-Trend: DOWN
Short-Term: DOWN