I think the technicals are indicative that the selling has worn off. I am long again.
Keep in mind this week we hear from the Fed. May be a in a tight range, till the fallout of - what I assume will be - them assuring the market participants they will do whatever is within their power to continue to keep the markets stabilized.
I imagine there may be talk of them seeking to keep the inflation target higher than usual for some time, and this will be very bullish for equities - a continued melt up.
Didn’t they already reiterate that at Jackson Hole? What would be new in the statement?
FiboTrader1
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better to wait til October. The bottom is not in yet
thebrewer35
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@apierett, I disagree. The market is going to run to new ATH before we hit a new bottom. Based on fib levels, it is possible though that the bottom is not in. There is very strong support at 50SMA levels right now, if that breaks we could see a lower bottom that last weeks.
FiboTrader1
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@thebrewer35, based on Elliott Wave Theory, we are in wave B which should last til Thursday and wave C will bring a lower bottom than last week. Overall, I am bullish, but I do think we will retest last weeks lows.
thebrewer35
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@apierett, I 100% agree with you. I realized that my previous response was conflicting. I still see two possible scenarios though 1) 4HR charts indicate RSI extreme, so it's possible that we continue up from here - 1HR charts do not show this though. 2) We hit B and then lower to C to have RSI extreme in 1HR view.