Be very careful for tomorrow!
Friday, August 21, 2009
Hello friends. Yesterday's movement was indeed impulsive, and after that (almost 38,2%) correction, we should be impulsing as well. The thing is that today's movement was series of overlapped waves that makes absolutely no sense for who's expecting a third wave, usually the strongest of the impulsive movement.
Looking for confirmation on the other indexes, i was confronted with a Dow and a Nasdaq that did not brake out a descending channel from the highs. Also Nikkei 225 appears to be resuming the down correction movement with tranquility...
I made an alternative count and covered my long positions for now, better a small profit then a loss. It's a 50/50 scenario and that gives me no comfort. Confirmation comes with those channels broken and with the highs being tested. If this more bear count comes to reality, we should be smelling SPX 960 in a blink of an eye. Sorry for the testament.
Best to your trading
PH
