I’m fine with the low being in. In fact, it’ll be a big relief. I would love to move on to a new structure. But, we do still need higher prices.
We need to make sure we’re not nesting ones and twos like this:
Nesting is often overused by Elliotticians, but where many are mistaken are not in cases like this. In this case, we are making lower lows (first for the green 1, then the blue 1, and possibly now for the little orange 1). And so here it can be ok. This is why we need to break up out of these structures and invalidate such a bearish possibility.
Frankly, I don’t know if we’re in a liquidity crisis or not. But if we are, this how we might wind up for a splash. If lots of people come to the conclusion, “Cool, we found support on the 200-week, that must be bullish after all, I guess I’ll cover,” then we can be in trouble. But truthfully I can’t say one way or another because I can also count this as a low being in if we do move up. So, that’s what I’m looking at. Both outcomes still seem possible until we move out of this falling congestion.
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