18 Dec 2014 - So What Gives?

I have to admit that my gut says one thing and the indicator says another.  But I am an advocate of following the indicator as your main trend indicator. Therefore my gut feeling has to be put aside, and if it is right then the indicators will SYNC with my personal sentiment. 

The reason why I am conflicted with the ST being UP today is that the low made two days ago was made of 3 waves.  Yes I know, I said EW cannot be used as the main analysis.  I am not concerned by the wave count itself, but what the structure means.  This would mean that the low made was a corrective pattern, and based on that analysis the patterned formed from Red B to Red C would be overlapping corrective counts.  This is the only explanation of why we made a corrective pattern low.  Another option would be that the correction is not over and that we could make another low with a C wave move lower (see Blue count wave-C).  The 3rd option would be that we are in a triangular forming pattern (see Pink counts CDE).  This last count could throw a fork into our indicator as volatility plays its ugly head.  When volatility hits, indicators lag due to the price moving fast in either direction in a very short amount of time.

Either way, these 3 options we have gives us an analysis that we would see new highs sooner than later.  So long players should set up for a long play..

MT: DOWN
ST: UP
PA: UP