Shorts that don't use time relationships may have been scrambling this afternoon. Nice impulse down, nice triangle consolidation, sell off should be next, right? That's right, except for one thing, it didn't do it in the time scheduled. Once a correction goes past the 100% time extension of the impluse odds are it's not a correction. I give wave 2's leeway but 4th's, never. Shorts late to the party get scared unless what they expect happens in short order. The longer it takes, the more nervous they get, and the shorts that rode the 3 down start thinking about taking profits. Stop loss orders get placed just above the triangle, break out traders placing buy orders, short covering all add fuel to the fire once the triangle breaks. Also, it can be argued that looking closely at Wave A of what looked like the 4th you can see a 5 wave structure (LDT)therefore making the consolidation a Wave B instead of a Wave 4.. It ain't ever easy.
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