Just looking at 15 min charts of SPX, NDX and INDU, I see fairly discernible 5 waves from the Jan 3 low, complete with bearish momentum divergences. This is kinda contrarian, in view of all the excitement, but - well, I must trust my eyes.
Options -- the five-waver under discussion may be finished, or it may extend more. It may be all (or part) of W5 since Oct low, or it may be all or part of a "C" (of an ABC) off Oct low.
Of course, it may be only an "early" leg of what would be destined to become a much larger bullish structure. How do we know? PWTS -- Pullback Will Tell the Story. If we start having impulsive-looking declines, that might - conceivably - mean "good night, nurse". If we get another chop-chop sideways, and then a breakout - I'd play the long side.
Nothing "always" works. Right now, I get no help from sentiment readings. Interesting. |
