Thursday, February 25, 2016
Bears Need a Top Soon, Good Place to Occur Now
The bullish triangle I called out in the last post on the 5min chart sure played out quite well, but much better, further and longer than expected.
Yesterday's rally was quite fierce and it made almost a straight line up. Bear market rallies tend to be quite sharp, but this one is also very deep and can cause some problems to the bearish count if it gets above 1996.25, which is the wave ((i)) low. The market closed right at wave ((iii)) 50% Fibonacci retracement level of 1951.
So, with the obvious follow-through to yesterday's sharp rally today complete, and a nice retracement level hit just shy of the wave ((i)) invalidation level, the bears could see a good opportunity to hit the market hard again to the downside either Friday or Monday.
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.