I hate slow motion selling. Real selling needs to take people by surprise in order to hurt them. When we tip toe like this and pussy foot around, it gives everyone too much time to prepare. Right now everyone is asking: “Is this consolidation accumulation or distribution?” And it’s taken so long that it lets everyone raise that question. And if, finally, we start to droop at the end, then everyone will come to the same conclusion.
So, unless, we really break down hard—not this 15 and 20 point crap—it is possible that we’re still in a bigger triangle, like the one depicted below. The bear trap happens when we take out the 1/3 low and everyone gets on the same wrong page. So, I would say, unless we can get powerfully below 4720, this may all be one big “B-wave.”
And an alternative way to draw this is this:
In either case, we need to move much lower to prove that we’re impulsing down.
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