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Downside momentum has again disappeared,
The 4hr RSI is turning up and keeps the higher low intact.
The 61.8% retracement level is near and this is the target for wave ‘ii’ to complete.
I can see a bullish technical picture,
A bullish momentum picture,
And most of all, an extremely bullish wave count.
This move looks drastic when viewed on its own.
But, when viewed as part of the overall developing wave structure,
it is nothing overly worrying!
When I look at the COT data, I can see that open interest has flat lined and bullish positions are building again.
So the appetite is there for a rally to commence.
After watching GOLD decline throughout the day,
I am beginning to wonder if wave ‘ii’ brown is actually complete at todays lows?
The wave count called for a large decline dead ahead, and so it came!
Cable declined in a very impulsive fashion today.
The price was down 300 points into today’s low.
But my real thought of the day comes in terms of the alternative wave count shown circled in red.
This wave count indicates that the price structure may be more advanced than previously thought.
This is a setup very similar to early April which yielded a 600 point rally!
We are on the verge of a big move here if the wave count proves correct.
Every day I try to approach the markets with a fresh pair of eyes as it were.
So, one day I take a view on the price action,
and then come back the next day to judge and criticize my own assumptions and biases.
The DOW reaches new all time high!
SO we should all celebrate that stocks are more expensive than ever before.
I hate expensive things!