Tuesday, August 24, 2010

Bears still have the ball...

I'd first like to note that the market gave us the signal I was looking for: a gap at or below Friday's low. After that, buyers came in strong near the 1040 pivot and the rest of the day was spent in consolidation. While the daily charts show consistent selling, we have yet to have a fully impulsive down move, where the market moves 30+ points down. We've had them in the previous waves, so if this is truly a minuette wave 3, then we should see at least one 30-40 pt move in one day (measured from the close of day 1 to the low of day 2). Tomorrow would work nicely for it. Let's see what the market gives us.

If the buyers step up here and can get a close back above 1070, then I'll move towards a short-term bullish bias.

Best of luck!
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