It’s just a correction folks, keep walking, nothing to see here. The uptrend is still intact.
But for your doubters, let’s take a closer look.
The first view is the “market memory” or “lookback” – just two words that mean the same thing that I use to describe when I my chart view includes the complete amount of data that I feel reflects the
2) important highs and lows
3) relevant last major moves (rallies and sell-offs)
The key words are psychologically relevant when it comes to this view because at some point in my analysis I will view the pair from within its market memory. For the daily chart, it’s one year.
The uptrend has – for now – found buying support above the 34 period EMA high as well as the 20 period SMA close. This area is also the swing buy zone for uptrends.
The uptrend is VALID only as long as the 34EMA Wave angle remains at “twelve to two o’clock” and price action is supported above the 34 period EMA low. IF the Wave flattens out, the market trend will have shifted. IF price action breaks the support of the Wave, support for the trend has been broken.
By the way, Happy New Year Baby Pippers! I was very quiet through December because quite frankly I was enjoying the company of friends and family in town for the holidays and used that downtime to recharge and consider what I did and did not like about 2011 and more importantly what I’d like to accomplish in 2012. I made some big changes in how organize and plan my day and projects. I wrote a blog update about it here for those of you who may like to check it out.