we could spend a lot of time in here zig zag ing, holding the 1100 to 1200 area,this would mean a base is being put in,if the selloff should continue,the rally would be short,for the bottom to be in we need to build a base first and massage this area. The end of a big move,or the beginning of a direction change is usually a lot of zig zag action,which we've been getting,
ES Journal Archive (2006 - 2008)
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At this moment, how many S&P500 stocks are in bullish state? Look at this chart.
In July 02 bottom, the number is 12%, in Feb 08 it hit 14%. We are sitting at 20% right now, so there are still rooms to drop.
Calling bottom here for longer term swing is a bit early. If you have to pick the bottom, wait until it is below 10%.
It is better to wait for the chart to turn to upside and buy the retracement, IMHO.
In July 02 bottom, the number is 12%, in Feb 08 it hit 14%. We are sitting at 20% right now, so there are still rooms to drop.
Calling bottom here for longer term swing is a bit early. If you have to pick the bottom, wait until it is below 10%.
It is better to wait for the chart to turn to upside and buy the retracement, IMHO.
Your analysis is spot on ammo, there's major divergence on the higher time-frames and a lot of opportunity for anyone who trades that style and holds for the major moves.
What I see on the chart corresponds to the zone you refer to ... contrarian players only need apply.
Good trading to all.
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Excellent market analysis during the massive downpour B1S2, you're obviously in this game for the long-haul.
Gap up or down?
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