13 Mar 2014

A great lesson today on why EW cannot be used alone.  Yesterday we issued a possible ABC ending pattern with a possibility of a move up.  That did not happen today.  We could still be right, but knowing a pattern would end is another issue that breaks or makes a trade.  Most who count EW cannot be faulted for ending a pattern too early, as there are equal amounts that stretch the pattern out too much.  Our intra-day charts yesterday was bullish but when the market opened, it didn't take long for the indicator to point south.  What was pretty consistent was our ST signal which signalled a downtrend, and still does.  Although my belief is that we would rally tomorrow, it doesn't hurt to profit take on some short position, and see if we can get into a better level tomorrow.  If one has some cushion of profits then one could hold until an ST signal reverses.

We do not know if a bottom is in, but a support at the 60min 200ma (1832.62) is close to our low made today at 1841.86.  Any move lower will surely find some support here.

MT: UP
ST: DOWN
PA: NA (Price Acceleration is Neutral)