It took all day, but they finally mounted a short covering stampede in yesterday’s last hour. The result left the market shy of repairing the breakdown. The indicators are ambiguous this morning. They’re not signaling yet whether there’s a second round to the rebound, or the decline has farter to go. Stay tuned.
60 minute bars.
30 minute bars
On the daily chart, you can see clearly now where support stopped the decline. The daily indicators are declining, and are in a kind of no man’s land where they are not at levels of any prior lows. I infer from that that there may just be a “tad” more downside.
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Catch up with the short term to longer term outlook, and chart picks for playing both sides of the game in my weekly Technical Trader reports. Here’s the latest:
An important low is due right now but bears have a chance to break the market. This report shows you the setup and gives you picks to play both ways. Current long/short swing trade chart picks are up 6.9% (100% cash basis) on average, with an average holding period of 3 weeks. This week I added 3 short and 3 long picks. That leaves the list with 6 shorts and 10 longs.
Technical Trader subscribers, click here to download the report.
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