Massive bounce after selloff returns to same declining channel

11 февр. 2014 г.

So after staying up all night through the Feb. 10th flash crash (thank you Mt. Gox), I've maybe got a few brain cells left. I was charting this same downward pitchfork leading up to the dump, and amazingly we seem to have bounced right back up into it, as if nothing ever happened (like momentary $102 coins). But the trend is still holding perfectly, declining at the same angle.

Such a selloff would normally be followed by a solid consolidation period (often at 50%), but that didn't happen here. Like a weak branch of a tree with a high shallow angle, this bounce is going to have to roll over and find a more solid consolidation zone where it can go flat sideways -- not slide perilously down like this.