Another Divergence Worth Noting

Back in February we had an early warning of what is occuring now…

 

And now we may be in a similar warning stage possibly being over extended to the downside.

We will see how we bounce from here. Looks as though this recent sell off has put the fear of god into traders. Sentiment indicators are showing a large amout of bears and not many bulls out there. I feel as if am the only bull left. Again, these times tend to turn out to be the best buying opportunities. Could still find more downside and would not initiate new longs yet, still need to see confirmation of any bounce. However,  things seem to be over extended and our one-step ahead indicator is showing longer term a high probability of higher levels to come.

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