Stocks surged big today and held strong all day, closing on the highs. But unfortunately for the perma-bulls, volume again was very light with only 953 million shares traded on the NYSE. This is very light, and tells me that most likely this rally is corrective. When volume returns, the market should fall.
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Today's rally is part of Minuette wave (ii) which should stop short of exceeding the Minor wave 4 high. This means it offers the bears a good risk/reward opportunity here since the potential profits from breaking August's lows are far greater than putting a stop just above Minor wave 4's high.
Minuette wave (ii) may not be over though. Despite light volume, the market was strong all day and closed on the highs suggesting there is more upside to go. Whether that small upside occurs tomorrow morning and then reverses, or we get a slight drop and then some upside, is unknown. Either way, the market looks bearish overall as Minor wave 5 is underway suggesting August's low will be taken out. I would be shorting rallies.
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After a very long and tightening consolidation the euro has finally broken out and has done so to the downside. I'm looking for this pair to head toward the 1.3800 level in the near future.
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.
2 comments:
Every information and that chart is very informative for us. That stock is really very corrective for investment for money in stock market. That euro is really great for that.
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