The break out of the 2nd TL I indicated proved to be the real deal. Dax spike upwards and got withing 4-50 points of the upper blue TL before fading back down.
For the ones who went long on the breakout it proved to be quite lucrative :)
Big question is - what now? The undershoot of the TL might be it for this bounce and 4th wave. Although I believe we will not have a longer term resolution until after the FED meeting on Thursday. In anycase, short term I expect some more downside movement - at least until we back-test the lower blue TL, around 10170. Action there will be telling if the upward movement is done or bulls still have something to say.
Good luck out there and remember - the purpose of the 4th waves, especially side-ways like this one here is to chop everyone to death. Don't get caught in that and trade the edges!
For the ones who went long on the breakout it proved to be quite lucrative :)
Big question is - what now? The undershoot of the TL might be it for this bounce and 4th wave. Although I believe we will not have a longer term resolution until after the FED meeting on Thursday. In anycase, short term I expect some more downside movement - at least until we back-test the lower blue TL, around 10170. Action there will be telling if the upward movement is done or bulls still have something to say.
Good luck out there and remember - the purpose of the 4th waves, especially side-ways like this one here is to chop everyone to death. Don't get caught in that and trade the edges!
