by Avi Gilburt, ElliottWaveTrader.net
I look all around me, and those that were bullish have now turned bearish, and those that were bearish are now drooling and foaming at the mouth. What happened to all the bulls?
When everyone turns bearish, especially after an impulsive structure off the 2015 lows has completed, and starts looking to further lows in the complex, it means the time is approaching for a potential reversal. One of our astute members said “when fear of missing out turns into fear of being in, you know you’re close to a bottom!”
I have noted several times over the past weeks that the perfect bottoming set up would begin as the market recognizes a heads and shoulders pattern setting up in the GDX. And, many this past week were pointing to this “perfect” pattern, which they view as setting us up for new lows in the complex. In fact, it could be “too perfect” since the entire market seems to now be hyper-focused on how it is going to take us to lower lows.
