Backtest

Last fall I postulated that a P2 peak would coincide with a backtest on the Chicken Oscillator (see here or here).

The chart below shows a clear backtest has occurred.

Assuming continued downward pressure in the coming weeks, the next challenge will come as the C.O. approaches the 20 line which can be viewed as a support/resistance line. A break below 20 would confirm that the world is ending and we are all going to die a long-term bearish scenario, while a bounce off 20 would put us in limbo (since the white trigger line will still be just above).