I think we are at a critical level now, thats why today despite of good fundamental news the index retraced.
We might be at front of a sudden reversal or correction because the market never goes directly to the stars.
Some reasons to consider.
- We have a perfect bearish crab completed.
- More than 20 candles ride on bollinger band, when this happens price tends to meet the middle (20 SMA).
- Strong continuum divergence, price tends to return to the level where the continuum divergence started.
We have three posible targets:
- Target 1: the middle of the bollinger bands (20 SMA)
- Target 2: 0.23 fib retracement and/or the opposite bollinger band.
- Target 3: 0.38 fib retracement, not very realistic now but thats the usually way to trade a harmonic pattern.
It is interesting to see that fib target levels coincide with important levels of S/R
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I agree with this fundamental opinion:
"The Fed definitely wants to return interest rates to more "normal" levels, and the jobs report today basically gives the Fed some leeway in raising rates.
Few would fault the Fed for a rate hike or two, but then again, it has been so very long since we have seen a rate hike that many bulls are concerned
that stock and bond markets might panic"
Best regards.
We might be at front of a sudden reversal or correction because the market never goes directly to the stars.
Some reasons to consider.
- We have a perfect bearish crab completed.
- More than 20 candles ride on bollinger band, when this happens price tends to meet the middle (20 SMA).
- Strong continuum divergence, price tends to return to the level where the continuum divergence started.
We have three posible targets:
- Target 1: the middle of the bollinger bands (20 SMA)
- Target 2: 0.23 fib retracement and/or the opposite bollinger band.
- Target 3: 0.38 fib retracement, not very realistic now but thats the usually way to trade a harmonic pattern.
It is interesting to see that fib target levels coincide with important levels of S/R
*****************************************************************
I agree with this fundamental opinion:
"The Fed definitely wants to return interest rates to more "normal" levels, and the jobs report today basically gives the Fed some leeway in raising rates.
Few would fault the Fed for a rate hike or two, but then again, it has been so very long since we have seen a rate hike that many bulls are concerned
that stock and bond markets might panic"
Best regards.