2014 chop-fest continues. Per last night’s post, the Financials confirmed its short/sell signal with an XLF close below $21.71. Thus, profits were taken on the FAS long trade and FAZ was entered just before the close. My hunch is this will be a short-lived trade. But for now, it joins the RUT on short/sell signals. Also, the Nasdaq is now on a short Alert and needs a close below QQQ $86.77 to confirm it. Meanwhile, the Real Estate index continues to hold strong, perhaps it will be a much needed magnet for the rest of equities.
The 3o min chart shows the updated bullish chart minuette wave (ii) had some work left in it as it retested the 61.8% retracement level today. There are other bullish scenario possibilities that can withstand further pullback, I’ll address them when/if the time comes.
The bearish count shown on the DOW daily chart below still calls for more upside (though one could force a top count onto it, it really is a force in my opinion).
And finally, the daily chart of the disparate equity indexes shows that there is support waiting any further downside moves for the indexes. Any large impulsive move that breaks the support of any of these indexes would be quite bearish for all the equities.
