3 Feb 2016 - It's Complicated.. It's Not You, It's Me..

The relationship between price and pattern is complicated indeed when involving time.  The patterns appears to still be in a corrective phase, where prices are moving in sideways 3 wave attitude.  The count is not as important but I do believe in covering all your basis for multiple scenarios.  So I have added a labeling below in (Red abc).  I will eliminate it as an option once prices surpasses the Jan. 20 low.  This option is very enticing in that the target price lands on the 61.8% ret. of the last run.

The ST has shifted to the downside as I was anticipating would happen if price did not rally.  The signal for an acceleration down also triggered in the morning session, but did not last as prices retraced and ended up green for the day.  The clue was when the intra-signal pushed above OS.  The complication here is that both the ST and PA was not in SYNC yesterday, and have traded places today keeping it at odds with each other.  I would trigger a short if signals enter back into OS tomorrow or a long trade if the ST shifts back to an Up-trend bias.

SEN: Bearish
ST: DOWN
PA: NA

The weekly bar is still Neg., therefore price is still behaving towards a bearish market.  The key here is if it closes this week substantially in the red.  This would bring about some strong possibility of volatility next week.. A signal I can't ignore that can trigger a slide.