The iii - wave option has now been changed to a possible (I)-wave which is one degree lower of a possible iii-wave. Since we did not break the lows made in early May, we have to still keep the possibility that a 2nd wave (red) is in. Which is then followed by an impulsive wave 3 up. Since we cannot yet confirm this 3rd wave up, we can however confirm its intensity of a move which would fit a 3rd wave. The move higher could also be part of a sub (ii)-wave, but I have not seen a 3 wave pattern.
What does this all mean?
-OB range means we have acceleration risk to the upside which we have.
-ST has turned up as well so it is trying to point to a CIT.
With this possible CIT, our Bearish Warning from the other day is yet again in danger of pulling a trap for bears. Moves like this by markets, means that our Bearish Warning signal is being respected and is on notice. We need to however check back to see if markets can turn itself around or will the bears just push the indicator lower. I will be updating this chart again sooner than later for those of you who also watch it with interest.
Yesterday I mentioned that a Positive Divergence has not yet occurred on a higher time-frame but this does not have to happen, but we just have to be aware of this since the intra-day chart did warn us of this last night.
With so many scenarios, the only thing to take away from this mess is to weed out the important facts.
1. ST is UP, so direction is UP.
2. Anticipate bears coming back if intra-day charts crosses below the midline as an early indication.
3. Bullish / Bearish scenario gives possibilities of accelerative moves, which means we should expect VOLATILITY.
4. Which ever side you are on, be ready to exit your position if you are wrong or indicators turn against your trade.
MT: DOWN
ST: UP
PA: UP
BONUS: This is the reason why I am "Bearish" even though trends might switch up. I may miss profits on the way up, but I'd rather not be holding a hot potato. HERE
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