Jenna,
Thanks for your input. I already got a CLASS 2 BUY signal on the DOW when the DOW was around 8965 this morning. ClASS 2 means that the BUY-IN time is the following day at the lows, but could reverse immediately. A CLASS 2 also means that it can go a bit lower, turning into a CLASS 1.
The DOW reversed and closed 100 points above the lows, which normally would be good enough to indicate that the reversal already started.
However, the futures are down substantially, suggest a possible retest of todays lows at 8955, or a bit lower. My CLASS 1 BUY signal will be ringing if it that happens.
However, this selloff is stronger and faster than I expected, so I am suspecting that the upside from here could be limited and could form a STAIRSTEP, similar to that at the end of JULY. If I am correct on the STAIRSTEP, it should take the form of a RECTANGLE, FLAG, WEDGE, which normally takes the direction of the immediate trend (in this case down).
The next strong support is at 8750, but think that todays low at 8955 or just slightly lower around 8900 should hold. If it holds there I feel that the greatest upside is a retest of the highs at 9375 forming a DOUBLE TOP, but the greater probability that a stairstep will develop and the upside limited to 9100-9200 range.
Im not sure if I will play this upswing since the upside could be limited to the STAIRSTEP. What stocks would fit this criteria???
Thanks again for joining us.
Seeya |
