Big reversal day today. We were up a good amount in the morning, tagged my 1180 pivot and reversed. The down move was fairly strong. Nearly a 14 point reversal on the SPX and just over 100 points on the Dow.
As of now, I have 2 possible scenarios. The first one is the bullish count that I have been on for the past week or so. I have it charted on the Nasdaq, since the waves are a little bit more clear.
It's possible that we are an Ending Diagonal for this move up. So far, on the Nasdaq, I only see 3 completed waves, and we seem to be in the 4th one now. After pulling back a little bit, we go higher.
On the SPX, I have that same ending diagonal pattern, but I can see 5 waves for it.
The waves are a little different on the SPX, so this is why the bearish pattern is a little bit more clear. This count suggests that we have topped, and we start a new down move.
The daily candle stick pattern is also bearish.
If it plays out, we could go lower.
And as expected, the US dollar continued to go higher today.
We may back off just a little bit to take a breather, as it seems a bit overbought on the smaller time frame, but the overall trend is up.
Apple had a bearish engulfing candle stick today.
It is possible that Apple may have topped.
0 comments:
Post a Comment