Pretty amazing reversal here. Needless to say we're quite overbought, and this is going to leave an enormous island bottom. My best attempt at a wave count would call this wave II an expanded flat. It sure doesn't look that way on the S&P chart though. There's something very strange about that price level to be gapping through it for the fourth time now.
Daneric just posted an alternate count that has been my primary. I see no reason for the market to top this far ahead of QE2's expiration. The nice thing about being a day trader is I don't have to worry about this. I just have to look for my setups, and it looks like if I get one at all today it will be on a negative divergence.
Daneric just posted an alternate count that has been my primary. I see no reason for the market to top this far ahead of QE2's expiration. The nice thing about being a day trader is I don't have to worry about this. I just have to look for my setups, and it looks like if I get one at all today it will be on a negative divergence.
The Euro is making new highs. Another amazing reversal. But these volatile moves are indicative of a top. We now have a divergence on the daily chart, and I'm looking for the same on the short-term charts before I go in.
