Very typically confusing Wave 4, this. We've got a very scary looking inverse H&S on VIX. SOX (a kind of AWACs for me, now that TNX and TLT are broken) was very weak yesterday. On the other hand, we also have some positive divergence on the 60 minute TNX chart (MACD).
I know I said TNX was broken, but I mean that it is no longer a tell on the daily. Because of the frequent bond buying by the Fed it is no longer possible to say whether a trend is arising because of fear in the market or the Fed's buying. On the hourly, I still like to look at it.
AAPL also looks like it has a bullish IHS forming.
Finally, and significantly, there is positive breath divergence at the recent 1411 SPX high (with the earlier 1430 high). Look at this $NYAD chart: http://scharts.co/IL4YrY.
I am swing long, but nervous. This has been a tiresome Wave 4. In future, I will try to just sit these out in my swing trading.
2 comments:
looks like better get out of longs..
Nope. Time to get long. Only have a little fire power left, which is a bummer, but in the long run who cares. We're going to 1500-1700 within the next few months. Whether I get in at 1330 or 1365 won't make too much difference. I will trade in and out to get a better average price.
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