Main indicator has bottomed, but needs one more 60 min candle to confirm. However, this is the last candle of the day. I am entering a trade on my Trend System, but as of right now it is unconfirmed. I wanted to enter it based on the buy signals from the secondary indicators.
Another day, another panic.
I am still not showing my micro-count because it is useless (as is any micro-count from anybody). If someone thinks they can predict the bottom of this panic wave based on a count they are deluding themselves. 1-2, 1-2, yadda, yadda is useless. This is one of those times where EW gives you no insight at all into the market behavior. Why?
Because this is a panic. This is an extremely volatile short burst move, and it will be over only when the fear burns itself out. Today looks like a likely candidate... But then again, so did Friday, and we dropped another 5% since that low.
End of mini-rant.
On the more useful side, my 60-min chart finally gave a divergence signal with the low today. I have one secondary indicator that gave a buy, and another one that is just about to do so. But my main indicator has not issued a buy yet. It has slowed significantly (slope is nearing zero from very negative) but not there yet. A strong up day tomorrow will likely trigger it.
The fact that I did get a divergence signal means that this cycle *can* be like a "normal" cycle (as I described here). Which means that we don't have a "spike bottom with no divergence" like we did in Sept and Oct 2008, and May 2010.
This means that I am not necessarily looking for lower lows once my cycle chart bottoms.
Like I said on Aug 3, if we got a bottom signal with *no* divergence with the indicators this oversold, the only 3 times that happened was Sept and Oct 2008 and May 2010 and all 3 times were accompanied by lower lows within the next week or so.
But in this case, we have divergence (which happens in 93% of cycles and subcycles) which means that this low could legitimately be the cycle low.
That is what I will be keeping my eye on in the coming couple of weeks. If we clear 118 without making a new low, then I think the downtrend is likely over and we are likely in a new uptrend.