As pointed out by reader JV200909 in a recent comment, SUNE does indeed appear to be forming a 4th wave HT. It is not yet confirmed but it will have to out itself tomorrow. It is not out of the question that we see another massive shit storm percentage collapse as shown below. This is where red 5 would equal red 1. This is a sick puppy but I don't sense that BK is imminent. Still you never know and so these plays should receive small percentages of your portfolio. Treat them like options in that regard. But if this hits the $1.20 level then I'd have to roll the dice on it.
This is not the only possible count. It's possible that red 3 was actually red 5 and if so the HT will not break down the lower rail. Set stops at $2.70 and if stopped out check back at the end of the day to see what the count is. USO does appear to be trying to put in some kind of bottom but a break down of $8.90 says that it could fall to $8 before bottoming. Such a move would probably happen quickly. If you leave stuff down here too long the herd starts to lose its fear and it starts to buy. Can't have too many people in cheap oil! I already sense a herd feeling of acceptance of $20 oil. In other words, the commodity crash is losing its fear grip on ppl and that is a major sign that a bottom is likely near.
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