An interesting day in that the "turn down" in precious metals, crude oil and indexes all coincided with a continuation of a possible turn up in the dollar that began on Monday. As you know I've been pounding the table on the "all-in-one" concept whereas as the dollar goes, your investment is inversely related. Those market participants that were hoping that today's price action was the start of w.3 down in the ES_F were disappointed as the wave structure of the decline once again unfolded in three waves, followed by a late afternoon advance. This suggests that another recovery high will be made. The only factor that would negate this potential is for an initial close below 1167.75 and then a move below 1155.5.
Here's the market's position at the close:
Momentum: Remains OB on weekly. Daily time frame has turned down from an OB condition and a divergence between price is present. The 60 min is bullish.
Pattern: final wave.v of wave.c of wave.2
Time: No change from previous comment.
Trade Strategy: Remain flat but looking to establish a bearish position as 60 min momentum indicator makes a bearish reversal while price and the wave count confirm a top is in place.
Best of Trading
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