Let's begin with the 3x point and figure. Clearly on the decline to 68 we were oversold having broken to new lows. This week we snapped back less than the 50% Mr Wyckoff would look for. At about 10 points straight up this is why bear markets are no fun. The 1x1 has the same uncorrected rise. It is now coming into resistance. The question is what will happen on a retest.Last week the weekly bar chart had its highest volume since the beginning of the year. While at the time I thought this was breakdown volume, it could also be a climactic selling. It also could be both. The volume has declined on the rally. We must observe the re-test. So far the Trend remains down.
The daily shows clearly that the volume has fallen on the very steep rise and the daily range has contracted, the secondary test is imminent. On this Test if the selling drives prices through the old lows 1 week ago, the downtrend will begin with a vengeance. If not a rally will begin.
