Thursday could get interesting.
The market continued the rally today, extending gains from yesterday. Our 4 hr chart score from yesterday was the fuel, and the good housing news was the match that lit it off.
Yesterday, the 4-hour score was at 57. For reference, the baseline for a wave bottom is 15 and a score above 200 would indicate a wave top. So, in the range of the nominal scores, it was fairly low. Hence the green color. Note that the 4-hour score went back up to 75 today. Also note that the RumWave score also increased, returning to the orange color with a score of 296. The Daily was the only score that decreased. All that being said, I just don't think the market is ready to start a sizable upswing. There are lots of opportunities tomorrow for the market to be disappointed. Coupled with the knowledge that the RumWave is predicting further declines I'm expecting a move lower tomorrow.
|4 Hr Chart|
The Daily Chart is not extraordinarily bearish or bullish here.. just kind of in the middle. But, again note the action around 9 May. The slow stochastic and trend quality indicator looked about the same, and we went downhill.
The bottom line is that despite the last couple days, the evidence points to a further decline. We'll see how it goes. I'm still HOLDING my 3x inverse DJIA ETF.
SEE YOU TOMORROW! PLAY LIKE A CHAMPION!