By Avi Gilburt
The more we chop around in the region we have been within the last several months, the more I hear analysts claiming that we are "correcting in time," rather than in price. This pattern seems to be lulling many into believing that we are developing a high-level consolidation, which most know as a form of a triangle. But quite often, these triangles break down, and open a trap door which most will not be expecting. The question is if this is one of those times.
One of the problems that we have during such "chop-fests" is trying to identify the operative pattern which will set the market up for its next big move. Unfortunately, this "chop-fest" has left us with three main patterns we are following (two bearish, and one moderately bearish), and one with a much lower probability (bullish). But none of the truly bearish patterns will take hold until we see a breakdown below this past week’s low of 1834 on the E-mini S&P 500 futures ESM4 +0.26% . So, let me go through each pattern so that you will know how to identify it when the market triggers the operative wave count.
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