Hi John
What happened Yesterday is that we had a Moon Conjunct Pluto aspect , which on those days, one can expect to see a short squeeze rally. We opened lower but by midday when the aspect was exact , we were fully into the clutches of the Pluto aspect.
The detour at this point that has me on guard is the strength of the Short squeeze was a bit larger than I accounted for. I had target of 809 to 819 , and instead we extended to 832 . So that is a Tell , a clue for the future.
It does not yet change the original trend (yet)but puts us on warning.
The 742 target actually had to be hit on Monday to end the downtrend , I gave myself a few extra days in case, but a failure to get there this week now opens the door to the next Dates of Oct 20 -25 which are lower, near 721. This has been the new focus for me this week once the 742 failed on Monday . It told me the much larger cycle is still in motion.
The only thing I cannot control, is FED intervention, and they have been out spoken lately of the possibilities of a surprise rate cut , which puts the market on edge.
Pluto is best described as intervention , manipulation , and the amplification of yesterday's move suggest that maybe some are already privy to when this rate cut may in fact occur.
So even though I look for lower lows ahead, I also realize that next week is options expiration and that the Fed would likely do something Next Thursday (next Pluto day) to seal in the new trend.
Caution is now warranted for the downside.
I am not Bull or Bear today but watching to see what unfolds in the next 2 trading days. If I have to draw up a new road map , then that is what I will do . Time is one thing that is on MY side. |
