8 Feb 2016 - Tag Team

The Bulls and Bears might be playing us for fools..  The push lower into OS territory in the intra-charts triggered a impulsive momentum while the end of the day saw us push up with the same impulsive manner.  The one thing different is that regardless of the push up, signals still kept its OS range and downside sentiment.  

The option of the a-b-c wave count in red is still pretty much alive as we revise the bottom.  Every time we do, we see the two potential rally target hitting significant rally levels, which makes it harder to tell if these targets are legit or an illusion.  The only thing that nullifies these pattern and count is if we get at the least a 5 wave decline, but a LL price would make the count more complex in that it could be counted as a complete 5 wave decline from the Nov. highs, or that the LL is the end of a smaller 1st wave.  Both will have a similar reaction.. A rally.  While the first option would have us going back higher to our 50% to 61.8% ret. targets for a 2nd wave or a shallow rally opined for the second option of a smaller sub-wave 1.

So the example above of EW counting is in itself an art, it does present some complex analysis.  So lets stick to the simple but true indicators.

SEN: Bearish
ST: DOWN
PA: DOWN