After the Nasdaq took a mystery pounding over the Asian session, we got back as high as 50% of the pre selloff levels.
Look at the volumes (bottom white bars)
Supply entered the market in force and crushed it to the lows.
Supply entered the market in force and crushed it to the lows.
We have retraced that 50% with no real conviction of buys or sells.
I think the lack of buying volume at the end of that selling spree is bearish.
Combine that with a nice shooting star right off the 50% line on the half hr chart and I think this rally can be sold.
However, be a bit cautious, as I feel we might have one more buying climax (possibly stalling at 2307.5) before we head lower.
As always watch the volumes.... If we get increased volume when we get near the 50% or 61.8% lines and they are bearish candles (shooting star/ engulfer/ etc) get ready to start selling
Added to my SOXS when Nasdaq future hit 2307 (deep fib of night session high to low).
ReplyDeleteWe shall see if that was smart or greedy....