Well, I've tried to narrow down the options. Two of them are part of a triangle and a 3rd is big time bearish. The reasoning with the triangle is that we have back-to-back .786 retracements. I always go to a triangle when this happens, but here is my ranking:
#1 Bullish Triangle: we have a-b-c-d complete with e to come tomorrow. We thrust out of the triangle to new highs and then finally collapse.
#2 Outright Bearish: we have a 1-2, 1-2 count going and tomorrow morning we collapse. This would definitely catch most of the players off guard, but I still rank it as low based on the price action we have had so far. I would look for a gap down tomorrow morning that keeps on going. A filled gap down would point to #1.
#3 Bearish Triangle: we have a-b-c with d and e to come. We thrust out of the triangle to head lower before the bulls find the buying power once again and we retest the highs. I would really hate this scenario because I'm very ready for this market to rolloever ;-).
Best in trading tomorrow!
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