I like your most recent suggestion that today's action into the late afternoon may have been entirely wave 2 -- at least when I look at several specifics.
Check out the SOX, AMAT, CSCO, GLW, JDSU, JNPR, among others. All appear to have been making bearish pennants or continuation triangles. Possibly, in the last hour, they were breaking to the downside, along with the broader market, only lagging a bit.
The only thing I don't like are the COMPX and the NDX, both of which still appear to be making bullish wedges if you look at the 15 minute charts. Of course, the SPX was making a similar bullish wedge until it broke hard to the downside at the end of the day.
My guess is the COMPX and NDX are both likely to break down tomorrow, led by a break in the SOX. I've heard the book to bill is out tomorrow morning, so perhaps that will be the catalyst. |
