Sunday, August 3, 2014

GE looks like it is putting in an ending diagonal.

If you are playing GE short, beware the potential for an ending diagonal to form.  The recent waves downward have been dramatic but not, I think, 5 waves moves.  Instead, I can count multiple 3 wave moves with triangles at the mid points of them.  It smells like an ending diagonal and those are notorious for retracing the whole way as shown in green 2.  The threat is that this was only a 4th wave for GE.  It's not my primary count but I have learned that when I see those mid wave triangles then expect something unusual.  I'm not calling for a higher high on GE, I just want to make people aware that the green 2 bounce could be pretty strong.

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