5 Dec 2014 - Market On A Sleeping Pill...

We might be making higher highs as expected but there is no drama or excitement to it.  So will we get caught off guard when the market turns?  Lets examine todays move..  Like yesterday but in reverse, the market rallied and tried to get back to breakeven then gets pushed higher just enough to stay positive for the day.  You wouldn't think that any significance or news came out yesterday or today based on these patterns.  Is this the calm before the storm?

The 5min chart again shows a 5-wave down but most importantly an impulsive move lower.  But I have been wrong with my counts before.  A C-wave move lower from 12pm today could explain the move if we make higher highs next coming Monday.

The daily chart though has formed a reversal candle with a continued divergence.  This would be significant if our intra-day charts confirms its current downtrend, and push both timeframes lower regardless of what the count is.  If it does push lower, I would then like to see the ST turn over as well, and hopefully last longer than 1 day this time.  Remember, we should be reactive and not jump the gun on what we think the market might do.

The possible target at this point in time would be the 50% retracement but can't rule out the possibility that prices could stop at the 38.2% as well.  It is wise to make an analysis of what lies around those levels.  The more support, moving average, or resistance line that lies behind these Fib. retracement the higher chance of prices settling down on either options.

MT: UP
ST: UP
PA: NA