Well that was one hell of a day, what an awesome move for options expiration! So does that complete a simple ABC correction? All major indexes have pulled back >10% and there was a huge bullish reversal today on record high volume, note the hammer candlestick. I have included Fibonacci values for the moves in SPY and DIA as possible areas of resistance/support. My personal feeling is that this is the bulls last stand but we'll have to see what they can muster up. I'll be very surprised if they can turn this thing around and will be looking to re-enter shorts at the top of the B move or lower if necessary. Perhaps the 38.2% pullback on this move. For now however, I am long JASO and ICE. And if that was a simple ABC correction, then we are now supposed to resume the bull market and make new highs. I think this is more likely the 1,2 & 3 of a 5 impulse Elliot wave (since I think we just started a bear market based on fundamentals). Any thoughts?
No comments:
Post a Comment