Not all down days are the same. I was so not impressed by that 400 point down day last week. The reason was that it did not produce new Elliott information or produce many TA breakdowns.
The days that are interesting, that provoke more posting (at least from me), are not the big down or big up days, they are the days where lines are violated, patterns breakout, and Elliott counts get firmed up or become possible. Today was such a day.
Here's an example of what I mean... Today, the mid-caps, which have been the leader for months, violated its up-channel out of the Mar low. Now, this is not huge, because as long as that red dashed line holds, it is possible that it is moving up impulsively, but it is a positive sign for those who are short. The channel is shown with the thick green lines.
The only fly in the ointment for MDY, is that it looks so much like a correction there at the top (a simple a-b-c flat). We'll see in the next week or two what it is.
BTW, ignore the thin green lines please. This is a picture of my personal MDY chart I follow, so it is kinda rough compared to most of the other charts posted here.
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