An inside day was formed Wednesday. A new downward price pulse has begun from Tuesday’s high of 1565.26. This high has occurred with bearish divergence on the daily chart in the momentum indicators I follow and is very near the 1563 Gann level. Tuesday’s high might mark the end of five Elliott waves up from September 10th but it looks like we have to go a tad higher. Fib ratios for the end of wave iii’ are just above the market.
Is a tradable high in place? Maybe, but I can’t act on it yet within my trading system. The price action has not formed a reversal pattern. It would do so today if we have a lower low and a close that is below both today’s open and yesterday’s close. All I can do is wait and see … this market keeps clawing its way upwards giving the impression that a fifth wave terminal impulse pattern has been forming over the last week or so. The trendline marked on the chart is also key.
My bottom line: give the bull the benefit of the doubt here and then “trade” the fourth wave correction.
No comments:
Post a Comment