When in SYNC, today is what happens. Although we had an up trend yesterday, I did mention that we are still in a bearish sentiment. Oh, how quickly all that up trend was erased today even with a green open. Yesterdays call of a corrective rally was the right call, as prices also had a hard time moving above the Gann angle I presented yesterday. With prices closing at 1890 today, I believe personally that we are not out of the woods yet, and that the levels to watch are the 1870 and 1820-1800 after that. These levels are key to anyone looking at EW counts, as it cascades down and eliminates the May high, and Nov. highs as Wave - 1 of a new set of waves up. However, if we do get a support below these levels, a Wave-4 scenario would still exist for bulls. In my views, there is no point in figuring out if this is a W-4 or not as a breach of 1200 or a 3 wave decline would be the only way to confirm this count and by then it would probably be too late.
Instead, lets concentrate at what is reliable... Our sentiment and signals. With the intra-day at OS again, it has renewed its pos. divergence. But the OS acceleration risk supercedes all until the signal exits OS. I failed to mention this past weekend that on a longer term level, the signals created during the Aug. Flash Crash has already been exceeded by the signals made during this down-trend. This means we should be much more bearish now than in Aug. even without a crash present.
SEN: Bearish
ST: DOWN
PA: DOWN
Note: The SPX is now in "Acceleration Risk" to the downside, and even though there could be a bounce happening, we should be aware no to go long until this indicator is out of the risky position.
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