A pause in markets today was good. When price relentlessly move without any breathing room, price tend to have a strong pull back. For bears this would be a good pause if one is looking for more downside. The LL I was looking for has not happened but is getting close. Once we get this, we should look for that positive divergence for a clue to a bottom. Based on the formation of the pattern from mid Sept. high to the current low, the waves could not be considered complete for an impulsive wave. This suggest that a B-wave corrective bottom is still possible. I spoke of this last week and said that a correction could still be under way. Whether this move from the May or July high in the markets is the start of a longer bear market or just a corrective bull market needs to be watched carefully due to possible A-B-C (Bullish), 1-2-3-4-5 (Bearish), and 1-2, i-ii (Bearish), that are all still valid. Sentiments however have not changed and we still are bearishly bias.
Martin Armstrong and his economic model has us at a turning point between Sept 30 - Oct 1st. Lets keep this in mind as well.
This Bear Is Just Waking Up!
SEN: Bearish
ST: DOWN
PA: DOWN
Note: We are now at a price acceleration risk, so keep the longs limited.
No comments:
Post a Comment