7 Apr 2014

The bears are not out of the woods yet if what I see as a possible bullish EW count exist.  But on todays market move.  Just when we think prices are oversold, we continue lower.  But todays low managed to rest near the Daily 75ma although not touching it.  This also happens to be near the lower BB line.  So a strong support even if temporary.  I would not be surprised if we make a final low tomorrow to touch the lower support before we have a rally. 

That said, an impulsive move does not always guarantee a single outcome.  If expanded, a possible bullish count is forming.  This consecutive 2 day drop could be a C wave count for a 4th wave as shown on the 2nd chart below.  This might be far fetched at this point but it is an option that we should still keep in mind.

For now though the favourable count is still to the downside due to our indicators pointing in that same direction.  Also on last Fridays update I mentioned that the MT had turned bullish, but with this weeks early start to the downside it seems that the MT indicator has also managed to turn down.  We will or should have confirmation by the end of the week if this has a bearish or bullish impact.

MT: UP (opened down to start the week)
ST: DOWN
PA: DOWN

Preferred Count:

Bullish Count Option:

Note: Bullish scenario will be in place when our ST turns UP...