The long waited corrective bounce came today, in US it was pretty mild like Dow Jones +0,3% and SPX 0,7%, it was stronger in Europe where DAX took +1,4%. Trichett interest rates view was capapult for it. It was very difficult to get this bounce indeed, 15 min DAX chart RSI was running 2 days before price reacted for it all.
I was watching how it is going to do that bottom and first retracements for it, this is because if it would offer any impulse wave + retracement for it, it would be fairy bullish. It didn´t give any fives instead exactly how I was expecting it to be ie. with 3 waves as ABC up where B was contracting triangle. This confirms for me it potentially is ZigZag corrective wave. Dax was ahead of SPX with this last 2 days all the time, it didn´t sell off yeterday close at all while SPX did that alone instead that 7000 bottom was placed for it allready 12 hours before.
All in all, I think we are process of passive ABC upside correction where we saw first A for it which brokes for 3 waves. The next could be slightly down to retrace it as B and C follow up again for higher. While next higher degree from that is also ABC and last C in it is not finished down yet we are in pretty boring market conditions if one is looking index. It puts us to range market which goes up but very difficult way and can see deep retracements because they are all 3 wave structures.
My DBLE long as mentioned, the only long I have rocketed up +17% today. The stock have ending diagonal behind with daily chart which ended for year change and it blowed up potential W1 for it. I did post that setup before we started to roll from 4 bucks to triple that stock. Since then, it has now come down with daily chart full ABC series down for pretty much max. size of W2 retracement and today reaction was not surprize for me, in theory it is possible it opened W3 of W3 up. Keep on eye of any smaller timeframe retracements for this rally with it, but do not go down with it if this bottom it did build does not hold.
This KMGB Chemical ABC chart I have down there, I believe has reached A wave down and should not be considered as bearish now with daily chart, at least B should follow up. Pretty much all the rest bearish setups did sell also today or then keeping it +-0 about. That OXM for instance this came down -2%.
I do expect silent week for next 2 days, reaching a bit higher levels with very difficult and passive way as it has been doing far also but for friday we could have SPX 1303 or even 1313 on the tape before entering for weekend. Not very good odds on there with central indexes, different timeframes are all conflict. Individual stocks are more interesting.
Tuesday update - SHORT TERM: gap up opening again. DOW +232 Overnight the Asian markets gained 1.1%. Europe opened higher and gained 0.2% after yesterday’s stellar performa...
7 hours ago