When markets opened this morning I thought it would be near impossible to even see what I talked about yesterday happen. But todays action was more bearish than expected. I was expecting 1870 at most but we closed decidedly below that and most importantly closed below both the 75 and the 200 ma on the 60min chart. This to me is bearish having close below both ma on the same day. On an intra-day basis we are oversold but this could stay oversold for a while. For now our ST shows a downward bias, but our MT has closed UP. So a complete flip of both indicators. I would trust more on the ST since any volatility always skews the MT and might catch up by next week.
The weekly candle has also made a bearish reversal candle that I was expecting for a CIT to be possible. So the gods are smiling on us today... Although we are shy of the 1900 mark, it would be the perfect play to sucker in those who were looking to profit above 1900 and have not taken profits yet. I am not saying that 1900 is not possible, but this weeks close is not bullishly siding with 1900 for now.
MT: UP
ST: DOWN
PA: DOWN
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