Zeev's Turnips Patch-No Politics (ZEEV)

[ahhaha]

Your charts look bullish to me. Consider them from an areal standpoint. This would be the sum of data points as a function of time.

The areal perspective shows the market has been sitting in an oversold state longer than any other period included in your charts. The areal computation shows that what you would count as downside wave 3, a break down through the July low, is actually count 2 on the upside and that the test will hold(selling is drying up in layman's terms). One has to remember that what is achieved in intensity can also be achieved in duration at a less intensity. The idea is to get people to book above to sell, create overhead supply to enable a sustained advance, and that is exactly what is happening now.

A successful test would provide a fairly significant fifth count down side intermediate pattern completion assuming early May's low is count 2. Sometimes this is taken as a fifth count of a downside wave and sometimes as the second count of an upside wave.

There is no way to know, but using the areal charts(time integral of your algorithms), the market has spent too long and has a slope too shallow to expect any more significant down side action. This assumes no extraordinary event doesn't occur in the world, but even some very ghastly event would have an extremely brief consequence. After extremely brief one would have to get off the short side toot sweet.

This pattern and its attendant psychology reminds me much of '74. The market moved sideways for a month after achieving a similar degree on the downside. During that month it seemed like the market would surely break, but it quietly failed and failed to do so. Then it formed a tight reversal diamond formation. It was the clue divulging the advent of the dynamic ensuing upside move.

That move was only an extended bear market rally in my book, and eventually rolled over in early '76 after putting in the dreaded Half Dome Head formation. Nonetheless, the upside was eminently playable and required structural short covering even as most doubted its power or longevity.