So far the bullish divergence between the composite index (middle pane) and RSI (upper pane) has led to nothing but a price consolidation. Indications are that the cash market will pop at the open due to “pent up demand” over the long weekend but for how long will that last? If the rally can’t hold we’ll have to see how price does at the TD Trend Factor target (purple line at 1614.62) as well as the Beta-X trendline (in orange). A close beneath this trendline will significantly raise the chances that the trending impulse pattern from last November is complete.
Bottom line: The daily chart remains bearish. Even if a rally develops here I would expect it to fail to make new highs and then go on to make even lower lows.
No comments:
Post a Comment