This post is mainly for the people already following my bearish technical analysis. It has been a difficult rally to navigate but here is what it currently looks like in my eyes. We are near completion of an ABC rally from the March 23rd bottom. We formed a bearish wedge pattern since then, kissed the top twice during the top of the 'A' and 'C' waves. This week, we broke the wedge, and many shorted there. Today's rally seems intense, but it is likely just a fake 'kiss of death' at the underside of the wedge. Market is hugely diverging from oil and the king pin AAPL is showing weakness. Once we resume the downtrend, we should get a good 14-30 days of downside momentum. Good luck all!
Comment:
Although market did not reverse today, we are still under the wedge. Next direction is unclear unfortunately.
Comment:
Wedge clearly broke and closed below today, even if i had not drawn it precisely last week.