INDEX UPDATE
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Have received PMs/emails quetioning if my CLASS 1 BUY on FRIDAY could be over in light of the 100 point rebound off FRI's lows. Frankly, I have a dilema.
On Friday, when I called the CLASS 1 BUY signal targeting MONDAY as the buy-in day at the lows, it was based on intraday data, but the DOW rebounded about 100 points, so on a closing basis there is no longer a CLASS 1 signal, and the DOW is only in the oversold region, and can go lower. Not to complicate things, I think that my CLASS ' signal on Friday is iffy.
Subjectively, I feel more comfortable with the position that the bottom, in reference to time, could be extended into TUE/WED. Also the SPX and NDX are still in the mid-range and can easily move down more.
I would not be surprised if the DOW retested Fridays lows or even surpass it and head to 8630 (Fibinocchi 38% retracement level). If Fridays lows do not hold at 8730(which is slightly above the 200 day moving average), the immediate short-term (5 days) rebound would be limited.
It is much easier to call a reversal with my system when the 3 major indexes (DOW, SPX, NDX) are similar in their readings like all 3 being overbought or oversold at the same time, but with the divergence of the DOW and NAZ such makes it much harder to read.
Seeya
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