The similarities between now and the beginning of August continued with yesterday's action:
Like now, the market was then pausing after a move up and was ripe for a correction.
Following the analogy, today we could see strength. I do not expect the market to behave exactly the same way but, if it shows strength, I will try to take advantage of a more significant rally after the open - possibly at 10 am when the consumer confidence number is released- to add to my short position, since yesterday I only entered less than half the desired size.
I still expect a move down close to 1100 before any significant upside.
4 comments:
Hi, I see that you are expecting the rally from July bottom is simply a bear market rally. If that is the case, why are you only looking for a 40 point correction from here? Are you expecting another counter-trend rally going back all the way to Apr top? Could you please share your longer term pictures please.
Thanks
Yes, I am expecting this bear market rally to head higher. I think it will reach at least 1170 before it becomes overbought.
Good day!
Thank you for your blog, very interesting
read your thoughts on the market.
I want to ask you in what time you see ES in the 1100?
(One week or a few days?)
You swing trader?
Thank you in advance for your reply.
Good luck and more profit!
Hello sergejriga,
I think the market can reach that level in about 3 days but it is hard to say. If the descent starts tomorrow, it would mean by Friday's close or Monday.
Yes. I am a swing trader.
Good luck tot you too.
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