As we claimed yesterday, the market dipped right after the open towards 1,600 (reached 1,608 or so) and then as predicted rallied upwards.
There are 2 possibilities.
1) The market reversed and will continue to rally higher, finding short term support on the 50 day moving average
2) the market trend continues down, and today was a relief rally in a down trend.
Analysis of the daily chart at today's close depicts at this point that we are in a down trend. Analysis of the hourly charts also at this point has not yet confirmed a larger trend reversal. If our analyses are correct, the sharp uptrend reversal today could be explained as a small degree wave-2 (corrective) of a larger 5 wave down structure, aiming much lower.
If our prediction is correct, we should soon see a sharp reversal lower, showing impulsive (wave-3 type of) characteristics
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