Friday, July 16, 2010
We've Seen this Structure Before
I need to come up with a name for this structure since I've seen it so many times. It's a sharp drop followed by a little or no rally, then just a choppy grind lower. This usually leads to a very sharp rally and eventually to new highs. It's a corrective structure. Although this outlook will be negated if we instead get a sharp drop lower again. But as long as that choppy grinding mess lower exists, beware of a sharp snap back rally.
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