More shockingly, a bearish prediction from ChartMan! Never thought I'd see the day. But at least it provides an explanation for the mysterious tripling in price of Dow puts this morning. :cheesy:
This week Frugi predicts rising volatility and several sharp intraday reversals, perhaps betraying the formation of an intermediate top. But remember Frugi is strictly a contrarian indicator, to be faded at all times
A test of 10564 or 10664 today doesn't look out of the question though.
Leg (i) down stopped at 50% retrace of wave (iii) thru (v)
(i) was retraced on friday to fib 50% at 10670'ish.
Is the next wave a (iii) or another i , ii combination?
For now we seem to be in a down channel!
However, several warning signals that Bears may not yet have taken over
Downtrend could be halted soon?
I see distinct PD in both CCI and RSI.
If we stay in down channel, my target for the next few days is ~10395 which is 1.618times length of leg (i)
We'll see soon enough.
Stopped for breakeven +1...in again at (YM) 10565 on ES dbl bottom with bol div. Bol div? Err, using lamb instead of beef mince perhaps...anyway I'm cooking dal...vol div I mean of course! Let's see if it gets past 10604 this time.
Just a contrarian thought, possibly premature; could the current pattern morph into a ‘W’ bottom with a target of testing 10750 again – every time it has made a new high recently, it has found a reason to go back and test it pronto……!?
Ps- the Nasdaq Comp is hell-bent on testing support at 2000 – will it hold….?
edit - Nice gap demanding to be filled 1150/1154 S&P....! (10min chart)
Distinct down channel in the making. 640 is a tad optimistic, but is supported by a "W" within the triangle.- Same target. CCI seems to like recovering off lows at -200 which is where we have come from. With +200 providing tops, it seems to be a good measure of what's to come.
Opening triangle delivered to T1 , with a short entry on the pullback to the dropout, riding down to the double dose of PD to close at 560.That was the easy bit... taking a loon on the RSI break/Inv H&H gave a bumpy ride into the close, at one point falling back 35 points, but staying in the 100MA +/- 20 band. Tough choices....especially as the H&S recovered off the target at 580. Barely worth the wait or the struggle in the end.Those closing slope changes in support may lead to upside moves tomorrow.