Might flop around a bit, but will go back up
Today's action was as expected. We got the whoosh I had been talking about. I quickly secured profits because I don't think this will be a sustained downtrend. Rather, I see it as a Wave 4 from an Elliot Wave perspective, so we should get another impulse higher before an intermediate term correction. I think today we saw an A & B leg of wave 4, and should expect a C leg sideways or down Monday. If we get it, I'll look to re-enter my long positions late Monday or mid day Tuesday for the RumWave and UltraWave.
The scores above got the relief they needed, but the RumWave score is still very high. I'd like to see the 4 hr score get back into some sort of green range before re-committing to the long side.
|DJIA 1 Hr|
The chart above is for learning purposes. It is a 1 hr chart of the DJIA. It clearly displayed a bearish divergence going into today's selloff. It is highlighted on the candlesticks and the RSI with a big red line. This one stood out really well, so it added to my confidence in today's expected decline.
|DJIA 4 Hr Chart|
The 4 hr chart candlesticks indicate a strong push to the downside that isn't done yet. We also see a bearish cross of red & purple lines on the Slow Stochastic.
|DJIA Daily Chart|
The Daily chart supports the case that there is more room to the downside. How much more is yet to be determined.
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