I found the early morning action a little confusing. I don't like "V" reversals. I prefer tests of recent lows. However, that is not what the market gave us this morning. On the first correction of the low, the market kept making higher highs after reaching the 50 - 62% correction point. This is bullish.
We then got a 50% correction of the bullish action, and then the bulls took control.
The VIX remained in bearish territory to add to the confusion. But Market Structure always rules over all other indicators.
The Staples / Discretionary Ratio also indicated bearishness, but the Advance - Decline Line was substantially more bullish than yesterday.
On the bullish 50% correction, we got a bullish divergence between the $TICK and the Futures. The market then advanced quickly after the divergence signal. After 1100 ET and into the European close, we then got a bearish $TICK divergence, and we are getting a nice correction to the down side.
Charles
No comments:
Post a Comment