Finally a clearer pattern. Finally 1388.13 was exceeded. Today will hopefully be straightforward: either a shallow correction down to as far as the 1380 area and then a possible new high, or the start of a the breakdown.
After yesterday, 1400 is still possible though. It's the 61.8% retracement and trend line resistance. Often when the market breaks a major trend line such as this one, it backtests it from below. This could be one of those times, so don't be surprised.
As I noted on Twitter, barring a high volume breakout much above 1400, the market looks set up for a significant decline. Let it release whatever information it has. Just as falling wedges started to appear just before the market broke down several days ago, I can't remember the last time I saw such a clear corrective pattern after such a straight line impulse move down. The fact that it's done so on light volume only adds to the suspense.
No comments:
Post a Comment