The intensity of the rally surprised me yesterday. However, the volume and market facilitation index were both lower indicating that there may not be "legs" to this bounce. Combine this with the fact that the negative reversal in the RSI is still in play and I have to stick with the bearish side here. Bottom line: It is now up to the bulls to convince me otherwise. Actually, all they have to do is hit my stop. :)
Unless the bulls can take out the August 24 high (in the cash S&p500) I consider yesterday's bounce as wave "b" in a larger a-b-c pattern unfolding from the August 24 high. In turn, that a-b-c pattern will form wave "d" in the ongoing contracting triangle scenario I have been following.
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