23 Sept 2014

The Bearish Mode we posted last night is a way for us to gauge our risk either to the upside / downside.  The market sentiment you see to the right shows us the current direction of the market and where impulsive momentum occurs.  In this case, to the downside.  This is also confirmed by our PA which is to the downside.  It does not mean we do not have impulsive moves up.  It just means there are greater chances of it happening to the downside.  So which side would you like to be on?

When indicators and sentiments are in SYNC, we tend to see the powerful moves.  So remember this and you should be able to tell when they are about to occur.

The markets broke yesterdays critical line, which was supported by a uptrend line (Marked by the dotted green line) and the 200ma on the 60min chart.  By not being able to hold price above the line, we can see who is in charge at the moment.  EW counters miss out on these runs as well because they believe they can time the market.  A quick gap down changes all that.  At times there are hidden counts as well that we cannot see because of those gaps and prevent a more accurate (LOL) count.

It is why we need to follow a timeline trend, whether Short, Medium, or Long-Term.

MT: DOWN
ST: DOWN
PA: DOWN