Pro for a short position
1. 61.8 Fibo price retracement off the June low.
2. 100% time extension of the April to June sell off - maximum time allowed for a correction.
3. A wave = C wave.
4. Counting B as a triangle, can only come in the 4th wave or a wave B.
5. Weekly overbought on the DTosc
6. Daily overbought on the DTosc
7. 3rd push on the Daily RSI.
8. Divergence on the 15 minute RSI.
9. Trendline resistance on the weekly RSI.
10. Channel resistance on the H & S trendline.
11. Overthrow on the correction channel.
12. Overlapping waves on 60 min charts.
13. The May sell off looks like a motive wave, the rise looks like a correcton.
Other - STU calling for a 3rd wave decline in the the indexes and a rise in the Dollar, either could trigger a sell off in copper. Both the dollar and euro are at Fibo resistance or support.
Cons for a short position
1. EWI is calling this a 5th wave rise, not a correction.
2. I don't like to see price acceleration in wave C.
3. Break of top channel could signal 3rd wave price action.
4. Indicators can stay over sold or over bought for a long time, as can divergences.
5. The May sell off can be counted as a correction or a impluse.
Trade idea - if all pro's listed above can't stop the price from increasing we will make a new high. So, long if the price is still rising past the 100% time extension date on Tuesday, short if the price rolls in an implusive manner.
