Wednesday, August 13, 2008

ESU08 Observations



Above is the difference between yesterday's close and today's close for the last several months. Interestingly, when the market had at least a -20 or +20 point day relative to the previous day's close, the market momentum starts to decrease leading to an eventual correction in the opposite direction.




On the premise that momentum precedes price, we may see another down bias day, since $TICK momentum is still in decline. We may also be due for a three-wave correction to the downside, since we have seen a five-wave up move.
Charles

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