Whipsaw Wednesday lived up to the name today, as we all watched the tape do a retrace, and then the afternoon sell-off (again.) Benny's words couldn't save it, the Beige Book couldn't save it- the technicals on the charts are telling the story for now. Good job to everyone for the coordination this week so far, but we have two more days left to navigate and OPEX week to anticipate. With that, let's look at some observations on the charts, and as always, proceed with caution. Keep in mind, if we approach that 1040 level again, this will be knock number three at that door, and we continue to put in lower highs and lower lows- the most simple definition of a down trend. Additionally, for now.. we continue to see bull pattern after bull pattern flake out- another hallmark of the resumption of a bear market.
Your homework for tonight: As you look at the AB=CD pattern on the first chart, we have the first portion of A = 8 candles. A-B = 22 candles. BC= 8 candles. We are 4 candles down now, if this pattern turns out to be harmonic in both price AND time, when would it possibly end? And remember.. this is all assumption we do have this pattern in hand.
 |  |
 |  |
Welcome to all of our new posters! Glad to have you onboard! :-)
Good trading tomorrow TTWrs! Wind it up!
