Yes we started down on Monday! The cash S&P500 sold off over 4% and formed a downtrending bar that generated a “Price Pulse (PP) Theory” “sell” signal when the Beta – Z trendline (at 849.52 today) was violated (see chart from last Friday). The price pulse trend itself turned bearish when we broke 835.58 and I have to be bearish at this point. Now it is time to look at downside targets.
As you know I don’t think we are going to new lows here but I do believe it will be a fairly deep retracement that goes below 780. That said we still need to take it one step at a time. Today’s chart shows that the first downside target lies at 825-827 and the second from 810-812. From a time perspective our first short-term low (Level 1 PRP) should come by this Thursday. As we hit each level we will want to see if the decline at that point is “qualified” or not. I don’t expect that we will go down in a straight line.
No comments:
Post a Comment