With the stress test results leak out early, the long-expected event turn out to be no impact at all…
After the MTM rule change, uptick rule proposal and today’s event, I believe this government manipulated rally come to an end today and we will retrace at least to the 50% fib is not lower. I can not tell if we will fully retrace the march 6 low @ 666, let’s examine carefully how the markets perform later on when the it gets to the critical levels.
If we take a closer look, top’s top just retest lower wedge line we break out on 4/20. There are still 6 unfilled gaps along this rally on the minutes chart. Even if we gap up tomorrow, i have no faith the gap will hold. so that will be a good point to load the short/puts if you missed them today.
by no means, XLF is strong in this rally and it has take out last Nov’s high. Today it printed out a black bar with majority of the body out of the BB band. If you see what happens to most recent similar scenarios, at least you won’t buy at this time. Also the measured move of reverse H&S pattern is done today. Expect a large retracement at least to the neckline level.
0 Good Insights:
Post a Comment