Internals show a market that is moving around on light volume with only 734 million NYSE shares traded today. More importantly though was the fractured nature of the overall market. Apple, and other big tech stocks, helped pull the market higher the past month or so. But Technology failed miserably today, and has been having trouble the past week overall. This is part of the reason why despite a solid performance from the Dow on the upside, the NYSE's up volume only slightly outpaced down volume, 387 million to 335 million. Internally, the market looks bearish.
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I'm keeping it simple. I'm not worried about Primary wave ((2)) or ((3)), and I'm not trying to make a fortune by gambling on a Primary wave ((3)) right now. All I'm doing is focusing on the short term obvious points we have in front of us which are: 1) the market was severely overbought going into the recent weakness; and 2) you can count an impulsive decline from the high suggesting that the larger trend is down. I would simply be shorting against 1422 with a minimum target of 1340, but probably much further.
Diagonal: Straight Shot to a Trading Opportunity
The euro seems to have made up its mind on which of my counts it's tracking. Usually a correction goes just above the prior 4th wave high, which is 1.3225 here in the euro, before topping. 1.3400 should not be exceeded, so I'm shorting with a stop just above 1.3400. Keep it simple, the larger trend appears to be down as long as 1.3400 is not exceeded so shorting seems wise here.
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.