Spongebob

The count options are all bordering on ridiculous at this point (both bearish and bullish). If you looked only at the price action, the count looks quite bearish. The 1-2, 1-2 down count looks not only plausible but even likely.

However, if you look at volume and breadth, it does not jive with the story at all. So something tells me it is still a trap.

But even if it is a trap, I am walking into it. By that I mean I am short. And even though I think we will get a bounce here, I will not change my position. The long term trend is down, and these squiggles (while annoying) are not convincing me that the trend is back up.

So if I have to endure some more sideways and up action, so be it. I am a patient guy. I will wait for the larger trend to unfold. I am still not interested in playing short term volatile and largely unreadable bounces.