The summer’s powerful selloff is still merely corrective on the monthly chart (see inset). I mention this not because I think the market is likely to come roaring back to new highs, but to remind you that we must always interpret the signs disinterestedly. If we do so here, it forces us to acknowledge that the second phase of the Mother of All Markets, begun a little more than a year ago, exceeded the required “internal” and “external” peaks to create a bullish A-B leg of monthly-chart degree. Although it has recently given way to a less powerful bearish one suggestive of a “duel,” this dynamic, strictly speaking, implies that the bulls still hold a slight edge.
