For Fibonacci followers this is the deepest ret. before a reversal. Most know this as the Gartley Ret. Today, we hit that Ret. at 2050. The rally is mature, but it does not confirm a sell just yet. Our ST is still on an upward bias, and need to respect this as can be seen on the chart below when the ST signal was triggered in mid February. The neg. divergence in the daily chart is also still in place giving the bears some hope that the market should turn soon. The market has closed with a "Bullish Sentiment", and so we need to be cautious of being short or bearish the market since the signal is just positioned on this thin line that separates us from being bearish or bullish. The ST needs to push back down and into OS for the Sentiment to turn back to Bearish, so what this means is that momentum needs to make a impulsive move down and sustain that move.
I will update this in the next few days and weeks to see if we can get a clue to the seriousness of this "Bullish Sentiment"
SEN: Bullish (Cautious on any trades here)
ST: UP
PA: UP
Note: EWI and Cycle analyst are calling for a potential setup for a stronger, prolonged and impulsive move to the downside, and so I stress that caution should be taken even though there is no SYNC in our case to be DOWN in trend, acceleration and sentiment.
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