Yesterday on the XJO thread Voltair posted this:""Although the...

Yesterday on the XJO thread Voltair posted this:

""Although the higher lows and higher highs pattern of markets other than here plus the EW pattern that suggests a surge could happen here, McLaren contends that rather than ABC zigzag rallies, the evidence is that 3 tops will normally occur in a bear market rally.

Those tops need not be each one higher but just 3 peaks.

If this is the case then the argument can be made that the work is done or even a bit more upside is acceptable.

Of course a huge surge higher would put a more conventional spin on things.""

So for BHP, there are now 3 peaks (they appear as "thrusts" as each peak is higher than the pervious peak) to the daily chart from from the November low. If the pattern is proved to be a 3 thrust pattern, price will head off in the other direction without any difficulty. Of course it can still break out to the upside, nothing is certain, but that pattern appears to be there now.