After yesterday's initial text book ab=cd
target hit (please refer to previous posts for more on that) I didn't do much else through the trading day. Indeed, the US session was itself rather uneventful. Today, like yesterday, we gaped higher again into the US retail session. The difference today is we put in a rather well defined double top
(or 'M' top), tested it and then failed miserably into the US retail cash close. We entered into the gap (which in itself is bearish
) and are now firmly pointing lower. My two initial targets going forward are a 38.2% retrace of the big up-move and then ultimately a 70.5% retrace of that move. This may take some time to develop (and we may actually close near these levels heading into the weekend) but considering current momentum readings, I for one shall not be buying until we see a serious bottom come in. I will be hunting/stalking 3m bearish
setups to profit from the anticipated move lower.