Here is today's wave chart for the e-minis. After selling my long position at 872.50 this morning I repurchased my longs at the first two horizontal red arrows. I was leaning on support at the purple dotted line and the wave chart still looked bullish, although at the second arrow we had already seen an up wave that was shorter than the preceding one. I sold my longs at the third horizontal red arrow because now the wave chart looked bearish - the market put in a longer down wave after a shorter up wave - and trading volume looked like it was increasing on a wide range down bar below support.I still think this may simply be an extended reaction in a short term uptrend, but weakness below the 859 level would mean that a drop of 35-50 points (at least) is underway.
2 comments:
Carl, thanks a lot for your intraday updates. I hope it does not interfere with your trading.
ES turned around at 853 during last night. There is a very strong support at 850. For a major drop of 35-50 points, does it not have to breakdown 850?
Hi Carl! Looks like the bottom in bonds, isn't it? Then the rallies are over for a while, thinking to short tomorrow. Long bonds already from today's low
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