by Pater Tenebrarum, Acting-Man.com:
Short Term HUI
After the very weak close in the HUI in Wednesday’s post FOMC minutes trading, we decided to take a closer look at the very short term time frames. We do this sometimes to get a better idea of whether rallies are impulsive and pullbacks corrective. What is behind this idea is the principle that moves in the direction of the current trend will be impulse waves and counter-trend moves will have a ‘corrective’ look (even if the ‘current trend’ is corrective in nature at one larger degree). Since the fractal patterns of the market have a tendency to repeat in all time frames, this can be useful exercise. We did not take the time to propose an actual wave count for the following 15 and 5 minute charts, we only wanted to show what the charts seem to be saying about the impulsive, respectively corrective, nature of the recent moves.
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