Good morning traders!
Our 20 days trend keeps to the down side, being a divergent trend, and as our current position is the low of the trend, is only natural for it to become "stable" if we pull up at this point. VIX did fall, indicating a pretty normal movement up.
The market di pretty nice job finding the new value, and we can see now a new area being developed at the lows, with a considerable volume, which usually would mean the continuation of the trend, but personally I think this one might mean we are kind of fighting back the trend, as we did not had this kind of volume up to this point in our way down. Non the less, we still have a good amount of volume up of us, and for that reason, I don't belive we will break up very easily. Most likely scenario for me, will be for the market to be consistent with the new VA at least for another round trip before breaking out... Of course in this case we might end up seeing a flush up, and come back. I don't discard the options of breaking higher, or lower almos instantly. Short from 3775, TP 3739.25 wrong 3803.75.
Our 20 days trend keeps to the down side, being a divergent trend, and as our current position is the low of the trend, is only natural for it to become "stable" if we pull up at this point. VIX did fall, indicating a pretty normal movement up.
The market di pretty nice job finding the new value, and we can see now a new area being developed at the lows, with a considerable volume, which usually would mean the continuation of the trend, but personally I think this one might mean we are kind of fighting back the trend, as we did not had this kind of volume up to this point in our way down. Non the less, we still have a good amount of volume up of us, and for that reason, I don't belive we will break up very easily. Most likely scenario for me, will be for the market to be consistent with the new VA at least for another round trip before breaking out... Of course in this case we might end up seeing a flush up, and come back. I don't discard the options of breaking higher, or lower almos instantly. Short from 3775, TP 3739.25 wrong 3803.75.