Stocks fell hard this morning, accompanied by solid volume on the decline. But unfortunately that's all the bears could do. Stocks rallied on soft volume the rest of the day. So the closing NYSE volume number today is a bit deceiving since it's very light for the day overall, but what you don't see is that the early decline this morning had strong volume. I would have liked to see a close today with 1.2 billion or more shares traded, but perhaps we'll get that tomorrow.
Stocks appear to be falling impulsively but we can't conclude that quite yet. We still need one more new low to make a nice 5 waves down complete. But the S&P must stay below 1322.94 to keep the nicely formed impulsive decline intact.
As for the euro, it rallied sharply despite stocks losing ground this morning but then the euro reversed sharply and never recovered. This looks like a nice reversal pattern and is worth shorting. So I shorted the euro this morning with a stop at last night's high.
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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.
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