For the past 2 weeks, we have experienced moves like we did today. The market is up or down 10-15 points and then it reverses and closes nearly flat. Again, like I have been saying for a long time now, this type of action usually occurs at tops. There is a lot of indecision here, and the daily candles certainly display that.
We seem to be in this triangle now, and it looks just about complete. If this is right, we could have 1 more push up.
My only fear is that if we approach 1200, the Dow might break the April high.
With tomorrow being election day and the start of the FOMC, expect some more violent swings. 1196 and 1200 are the upside pivots, while 1173 and 1159 are the downside pivots.
So far, we only have 3 waves down from the high... so it doesn't look like an impulse down, despite the down move being very fast.
Until we can get a decent 5 waves down that holds, the trend is up.
I have highlighted the closing range of the last 8 trading sessions. The range is only 7 points wide. So technically, in 8 days we have only moved 7 points.
However, we have been as low as 1171 and as high as 1196. Just by looking at the candles, you can see the indecisions. The bears are scared to sell and the bulls are scared to buy. Until there is a clear winner, expect this action to continue.
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