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Market Insight: Crude Oil Flirting with Extreme Sentiment Reading
Watch Elliott waves -- and other technical indicators -- in action as the markets trade

By Vadim Pokhlebkin
Mon, 12 Nov 2012 17:45:00 ET
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November 12 was Veterans Day -- a federal holiday in the U.S., and a quiet day in most markets. 

But "quiet" doesn't mean nothing noteworthy is happening. Writes Steve Craig, our Chief Energy Analyst and editor of EWI's Energy Specialty Service:
"Extreme readings on the Daily Sentiment Index (as reported by trade-futures.com) often presage important market turns. However, the timing isn’t always precise. How do you get around that? Look at the wave count.
"When you combine a DSI extreme (bullish or bearish) with an Elliott wave structure that counts complete, your confidence in your forecast increases. Crude oil is there now: An identifiable Elliott wave price pattern that coincides with an extreme DSI reading.
"I am looking for the next piece of evidence -- a five-wave structure, the key ingredient supporting a trend change."

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