Well after testing the 982 level yesterday and a failure to break it, we again tested 992 overnight and the rally you see here is indicating to gap up. I know I am sounding like a broken record here but moves such as these are not from durable buyers but momentum players losing steam creating a topping pattern. This probe of prior highs (1007.75) is a retest of prior highs and the key here is trying to identify a change of guard. Any real attempt to push prices higher may indicate a new rally leg forming. A close in the teens (1015+)would indicate as much to me. Otherwise I am still deeming this a topping pattern.
The pattern i drew out is a downward sloping triangle which indicates that the market intends to break downward. Any break upward is usually a false break. This pattern occurring indicates to me that unless we get a new rally leg today, the market is in the process of topping.
No comments:
Post a Comment