Thursday, February 3, 2011
Waiting for Unemployment Data Reaction; Euro Decline Shows Bears Still Have Life
Not much to report on a “do-nothing” day. Market participants appear to be waiting for the big unemployment number coming out tomorrow morning. So expect some volatility heading into tomorrow’s US market session. The internals today show a flat market on low volume and basically tell us we need to wait for tomorrow’s jobs report to get a better idea of short term direction. With the market so overbought and outstretched in price, optimism, the wave count, and momentum, the odds favor that volatility tomorrow will result in a downward move. However that’s just an educated guess at this point since there are no signs of the uptrend being broken in stocks just yet.
Learn Elliott Wave Principle
So in summary, it’s a waiting game until signs of a top enter the market and we can control risk with a high confidence short trade. I’m going to wait for the market to come to me and play into my setups, not try to impose my will and impatience on the market and get in too early. So I’m waiting.
Trendlines: How a Straight Line on a Chart Helps You Identify the Trend
The euro did exactly what it needed to do if the remaining bearish potential were to remain alive by declining hard today and closing near the lows on the day. The decline looks impulsive, but needs a few more new lows to make it more of a certainty. A daily close beneath 1.3569 would be extremely bearish in my view and get me to pound the short side Sunday night.
Let’s see what action follows the employment report tomorrow and see if there’s a play to be made…
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.