The index or stocks MUST AT LEAST break the .786 fibonacci retracement level or a new relative high/low before a trend can continue? Please comment?
Since the markets r fractal in nature there is always a trend in every time frame. So knowing this, u must decide what time frame u r trading, and if your particular time frame is trending, how far it will go. Elliott Wave is probably the best, and most complete definition of market movement, but only a scarce few can actually trade it.