Well, all I can say is that the bulls are digging themselves into a hole. They are still buying every dip and creating little short covering rallies that don't last. Take a look at this 5 min chart showing the action at the end of the day. Talk about not giving up! Unfortunately, without somekind of capitulation, we'll continue to get bull traps all the way down to 100!
So does the capitulation start tomorrow? The charts aren't entirely clear. We are oversold on a number of indicators. But, during a bear market, that could mean either we collapse or rally. Not much help there either. Tomorrow is option expiration day, which puts a trading range day at a high likelihood. I guess I'll put my chips on a range day with a sell off near the close and a nice gap down on Monday. (see above chart)
If any weakness in the morning is not reversed within the first 60 minutes, then we may just plunge (see chart below). Also, I'm looking for any rallies to be contained by ES 800.
Regardless of how it works out, we still have much more work to do on the downside before we can call this primary wave over.
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beautiful...thanks Rich...
ReplyDeleteHello Rich, your home page have some problems because don't show your updates. About the counts i'm a little suspicious because dax is yet above the lows of January (wave i). This can means that this is not the wave iii but some abc correction. Latter i will post a big picture in my blog to everyone se it. Regards.
ReplyDeleteStrange, in my work computer is everthing ok. I have made my update in my blog. What you think about it?
ReplyDelete