The Fog of War is getting a lot thicker when the SnP500 made a left hook yesterday before the closing time on the 15min chart forming an a-b-c run up (labeled as red b-wave) instead of the expected i-ii-iii-iv-v needed for a reversal pattern.
Since I am long SSO from the $52.53 level; it is worth looking again how the bears may be interpreting the wavecount after the initial attempt by the bulls for a recovery rally:
- imageshack.us/photo/my-images/163/snapsh.../
As of this moment, Spx may or may not test the Major Resistance with the final outcome still unknown right before closing time today.
For trading purposes, it is imperative to be a lot more cautious now since the possibility of a Spiral Meltdown can happen at this stage and the 15-min wavecount are not helping the bulls.
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I sold 1/3 of the SSO buys (bought at $52.53) at $53.56 as a precautionary move. Better to bank some profits while the going is still good. Hopefully, we don't gap down tomorrow.
Two-Edged Sword
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