This truly is an Alamo moment. Everything is working against the bullish case (allbeit short term). Inflation, the Fed, Putin, Sentiment. However, the market held. Who expected a 10, 20, 1000 % crash is extremely disappointed. It is true that prices lightly dipped below January lows. So what? If it was a wave 1, then it would be important and the afternoon bounce suggests differently. I am slightly changing my count, with no material difference. I'm still expecting a (C) of B to develop before really serious bear action takes over. It seems that this latest faze of the market developed in a triangle where it is common that the (e) leg overshoots. Having overshot below january lows (allbeit just by a few ticks) suggests this abc pattern is developing into an expanding flat. Natuaral target of C is the 1.618 extension. We'll see what the market has to say about this.
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Tuesday 22nd was a fibonacci cycle low for the cash market. 89 days from november highs fell on feb 19th which was a saturday. The next trading day for the cash market was yesterday, tuesday feb. 22nd
Trade active:
Not tempted to squeeze. A short squeeze still means more buying.
