Thursday, January 23, 2014

Fwd: Rally into the close should be....

SP ending the day in rally mode. Maybe the cit is to the down side. The pattern says 70% chance this rally fails without going above 1829.50 es. Then it is followed by a powerful down leg that easily takes out todays lows. This is what the pattern favors, so I am short 1 mini at 1824.
Now, before the next strong leg down materializes, we may see a day or so of drifty up and down price action. This is an abc pattern up so it will make a strong "a" wave up, followed by a "b" wave back down, and then one more strong leg up ( that stays below 1829.50 es.). So don't expect the powerful down leg to show up right away. It could, but usually a lot of digest time is needed before the next down leg shows up.
Conclusion: Odds favor this rally into the close is a correction and one more strong leg down should show up in the next day or two.

No comments:

Post a Comment