We had the largest pull back since this up leg began.
This is also the first time price action touched the 20 day Moving average. This level will be key, and if we close a couple of days below the 20 MA, this market could be peaking.
Volume isn't massive for the bears, so that is something to look for. If sell volume starts to pick up, it might be a signal to start lighting up positions.
MACD histogram as a negative tick indicating short term momentum has shifted to bears. However the MACD line is well above the 0 level.
The slow stoch again has falling below the 80 level. Previous 3-4 times it bounced right back over the 80 level. This time, it appears it has a steeper slope, which I would interpret as a stronger momentum shift that previous declines.
ADX has not signaled a sell yet, but it is something to watch, it appears it could happen next week but we will see.
I am usually pretty bearish and I do believe that this market is in store for a massive and quick correction / breakdown. However, today I thought I would assess the bulls side of the argument.
Still a novice at Elliot wave, so don't put to much weight to these counts but you could make the argument that we will see a slight correct now, and make a new high to end a wave 5 within a wave 3. Then we would have an ABC correction that would be Wave 4. This would imply that there would be a higher high yet to come in the form of a wave 5 (yellow).
I am currently not in the market as I don't have the time to monitor any of my trades. However, I play on entering when this move is more defined.
No comments:
Post a Comment