RumWave indicates 2/3 thru decline
Today we saw an impressive rally from the gap down at the open back to positive territory then a decline at the very end of the day. This action resulted in a continued decline in daily scores. Ultimately, the RumWave (my proprietary indicator) shows that we still have some room to decline before the trend direction changes.
The daily scores (that I calculate each night) are showing a very green 4 hr chart score. However, the RumWave score and Daily Chart score are still in the yellow range. This indicates the bulls should start to fight back a bit in the near future.
|Not a good time to start new bullish 10-15 day positions, further decline likely.|
The 4 hr chart matches with the color coded daily score. The candlesticks show an easing of downward momentum while the Slow Stochastic and %B are at quite low levels. The RSI is also low and the Rate Of Change indicator shows a slowing in the ferocity of the decline. The wave count on this decline lends itself to today being the "4" wave. Next would be another leg down completing a "5" wave pattern. This correlates with the RumWave's prediction that we are 2/3 through the decline.
The daily candlesticks show no sign of letting up, Slow Stochastic has room to decline, and a bearish divergence is still visible between the candlesticks and RSI, indicating a likely continuation of this downward trend.
As always, BEST OF LUCK TO YOUR TRADING TOMORROW!