Wave 5 down has likely begun having put in the first and 2nd confirmations of HT breakdown today which is loss of support on the top rail and then loss on the bottom rail as well.
Longs, if you are reading this, watch your assets! Next week is (likely, always likely, never certainly even if I don't take the time to write it each time....) going to play out 3 of 5, 4 of 5 and then 5 of 5 of 1 to create a lower low and to pierce that lower green rail but then not be able to hold position below it. First waves do not have the power to break and hold major resistance or support. It takes a 3rd wave to be able to do that.
In case you were wondering, that lower rail comes from the high level picture shown below. It is the lower parallel to the upper rail. When that gives way, the pinata splits wide open and all the treats fall on the floor for grabs by whomever is the quickest.
2 comments:
Don't you think JNUG and the miners would collapse to retest their lows under this S&P breakdown scenario? Much like what they did during late August ignoring the strong bid in gold!
Prechter teaches us to ignore exogenous factors. If you count the waves properly then you will be OK no matter what other things do.
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