Daneric in his posts about a likely market fall and how it could unfold often says that if P3 decline arrives then don't be surprised if markets stay over sold and don't bounce.The reason is simple.P3 is really PONZI recognition stage and simply recognized ponzis don't bounce..they just get more and more oversold and collapse.

I get DE's thought pattern on this.The point is once the system gets recognized as a failure the bounces won't exist...forget your fibonacci retracements!!..in reverse I am wondering if PM's can stay extremely overbought/high bullish readings  during this ponzi unravelling.Lets remember no govt has any plan to do the right thing here.So overbought readings in all timeframes can stay high as will bullish sentiment readings BUT price will just grind higher.