- We do have an inverse, and we shouldn’t ignore it.
- We have a clear impulsive rally off the low (green 1), recapturing an important, long-term channel.
- The pullback off that impulsive rally came exactly to where we would want to see a “2” come to (the orange box).
- That was followed by a much funkier rally (blue 1), but one which nevertheless consists of 3 distinct highs (a candidate for a leading, expanding diagonal).
- And today, it pulled back, again, exactly to where we would want to see a “2” come to (the 61.8% retrace).
And so: it still needs to prove itself. But, trade fundamentals all you’d like to, but until this proves otherwise, this is a candidate for a 33% rally. It may not do it, I understand. But with a price structure like this, it’s possible that it does, and I can’t ignore that just yet.
So what’s it telling me? It’s at least telling me that there is at least potential for a very bullish market.
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