I had anticipated a rally before a drop to our low of 1820 level, but prices accelerated downward. This is a great example of why we cannot trade against the trend. The SPX missed our lower target again by only a few pts. at 1820.66. But this run might not be over unless it is labelled wave-C (red). Which means we are headed to new highs.
The clue now lies in the next pattern that develops...
1 - Is it a 3 wave or 5 wave pattern?
2 - Is is making a higher low?
3 - Has the ST turned UP?
These 3 clues should tell us whether a CIT has occurred. For now though it is not the case.
MT: DOWN
ST: DOWN
PA: DOWN
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