Secondly, on my preferred count we are in the beginning stages of a 3rd of a 3rd of a 3rd wave, which should have some power to it. Yes, we did have an up day, but on the NYSE total volume was lower than Monday and internal statistics were much weaker than Monday: Up/Down Volume ratio of 2.2/1 and Advances/Declines ratio of 2.9/1. Not very powerful or impressive, or rather impressive in a bearish fashion.
There is an alternate count best described by Daneric (http://danericselliottwaves.blogspot.com/) which may come into play here - it certainly deserves consideration. That count was discussed in last weekend's update, so I'll just post a current snapshot (daily ES chart):
On the Trend/Osc system, the up trend line was adjusted when new highs for the move were achieved today. That trend line is not very far below current prices. A break of that trend line accompanied by a reading below 80 on the Dyn Osc would generate a sell signal. Given the situation, it might be a significant sell signal.
Hi Al, I'm back from trip to see my folks in Canada. Drove 3600 miles in my new Subaru Forrester. Visited Ottawa, Montreal, Cobourg, Gettysburg and Charleston,N.C. Back to trading. I took a short via HSD etf on Toronto Stock Exchange. Just based on the look of the charts and a little encouragement from your Vindicator. 3000 HSD @ 13.91 while ES was at 1119. I still have short I took 3 weeks ago holding SPXU.
ReplyDeleteThat's quite a vacation and quite a lot of driving. Hope you enjoyed it.
ReplyDeleteI'm short ES @ 1120 as of this AM.
Leaving myself on business to Michigan in about an hour, won't be back until Saturday. Of course I'll be keeping tabs on the market but may not have time for much else.