Another volatile day today. As I said yesterday, the next few weeks/months could be very volatile with violent swings in both directions. We were down over 200 points on the Dow, nearly turned positive, then sold off again nearly 150 points. Volume is also picking up very strongly to the downside. Market internals are also pointing towards bearish action.
I posted a few possibilities yesterday. One of them was that this bounce back up from yesterdays low of 1065 is a wave 4. We could be forming a triangle for wave 4.
If this plays out, we could open a little higher on Monday to finish the (e) wave, then have a very hard sell off as the thrust out of the triangle could take us to at least the lows at 1065 maybe even 1050 or 1044.
The other count I had was that this is bounce from 1065 is a Minor wave 2. With today's choppy action, I doubt that this is the case. It seems more like a wave 4 triangle. However, if we break back above 1130, I would have to re-evaluate this count.
The daily charts are still painting a very bearish picture.
I find it very hard to look at that chart and be bullish. The trend is down until proven other wise. Breaking below 1095 will be very bearish.
I will have more stuff over the weekend. Perhaps another video.
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