Consolidation is proceeding perfectly along the 50% retracement. The next two possible moves are pretty clear - but the bullish one would be a continuation of the trend that has existed since the bubble bottom. If the bear scenario plays out, there is really no way to remain in this trend any longer, which should be seen as a more serious, deep, and longer-term bear forecast than any of the selloffs which have occurred after the peaks in this channel.
(sorry for the lack of fib retracement overlay - publish seems to have hidden it completely)
Comments
phrak
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Ron, remember the time-frame you're dealing with here as well - Christmas & New Year had a very low volume
ronfkingswanson
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and we've had steep rallies and declines within even a low-volume window. What's your presumption if volume increases?
phrak
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I can't pick it to be honest. I was watching the xmas/NY charts and everyone kept expecting it to dump at any moment so never put any money on the line. I think that the manipulation on this current market makes 1-2wk TA close to useless.
"Forces" are working to their own agenda (whatever that be at the time) and are often in an arms race against each other.