It was only yesterday I wrote about the break of the 47 area to head towards 36 and 26. Well, I got more than I bargained for. we hit a low of 2615. It took me by surprise. Anyways for those nimble traders we got 2 way action today. The PB is upon us, but to be honest, I expected at ouch of the 2710 area before the PB. MY expectation is for this current move from 2638.5 to stop around the 2627 area. I am looking for a push to the scene of the crime which is the 47 area once again before a likely sell off to 2594-2596. IF this is a deeper correction, then from there we should get a bounce to the 68 area (fill gap) and then head towards the 2560 area. I have tried to draw potential routes on the chart. Don't hold me to it. AS always, it is transformer time. Bears will see H&S and Bulls an IHS. each to their own. I made an error yesterday. I said I would be concerned below 2580. That should read a sustained move below 2590. A possibility which I do not lean towards but still possible is we head straight from here to the 2596 area. Above the 35 area is mildly bullish and above 50 that becomes more likely. For now though 2676 is the key.
Comment:
Wow. Talk about two way action. For the fleet footed traders a dream day. For other, perhaps not. At times it felt like you were being shaken by a shark. I do not think much has changed. I would just be a bit careful here. There is a possibility of nested waves and if that is the case, tomorrow could turn out to be nasty. Lower highs and lows, albeit 40 point swings... either way. would give El Toro a run for its money. I would be watching the 30-26 area again carefully. I could see a bounce back up to around 40 by the open tomorrow before a take down if that is the plan. If today's low breaks then the 2596-2609 come into play. Given how the selling has been, if this is nested, the 85-90 area is not going to be an issue. Given the various news stories that can be used to engineer moves anything is possible.