This has become a very kind and generous market. Overnight, some news release appear about another great plan to help out a great bank or two. Index gaps up, and peters out in no time – giving us all an opportunity to re-short early in the day.
When making money in the market becomes easy, I feel somewhat uneasy.
I expected a bounce for some kind of a small degree 4th wave. As it happened, Friday’s meager bounce was very likely the 4th wave. But we got another chance to re-enter and I've got no complaints
This was the 6th day of selling in row.
Volume was above average, but less than Friday. Breadth was poor.
Let’s look at the 60-minute count
For wave measurement, it does not matter where I place minor wave 2. That is because late January peak and early February peak are at the same level. A simple wave 3 = wave 1 measurement will give us the 740 are, which was hit today.All we have to remember is that the trend is down, and price is right now in a very ugly down-sloping channel.
Nas100 has also joined the downtrend party.
Things are lining up for a good low that may launch a sustainable rally. We need high volume selling, and a good rinsing of the happy crowd. After we get that, I should be on the lookout for first signs of an uptrend: higher highs, higher lows. I think we are still some ways from that, but I can start planning.Short-term breadth is very oversold, and I still think a bounce should happen any time, but market does not care what I think, and price is all that matters.
To the downside we have 734 and 717 as pivots, to the upside, 750 and 768. If bulls can do something to get a rally going, 800-810 look like a very formidable resistance.
Again: long term trend is down, mid-term trend is down, short-term trend is down.
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