This pause from the 10% draw down lows, is evidently waiting for the FED to push it in the right direction. Based on these EW patterns, it can go both ways, but does have us going down next week perhaps before FED day. How far down will be the question, and once this is answered the direction will be much clearer before the FED speaks. The ultimate tell into the markets next move is the critical low made two weeks ago. If prices exceed this before Wednesday we should see a rally, and will probably be used as an excuse for FED to hold off on the hike. However, if prices rally to post crash highs, then a scenario where the corrective pattern has ended and that any news would be sold off as bad news.
So far nothing has changed in the bearish sentiment, and the strength still favours the shorts.
SEN: Bearish
ST: UP
PA: NA
The PA indicated an acceleration down yesterday but did not see anything significant other than in the intra-day charts where indicators were at OS yet did not give anything up.
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