If it can’t go up …
Several nice signals today. At lunchtime (9 am Pacific time) there was a nice pullback to the 38% Fib level. Then the market tried to make a new high for an hour and a half. By the time it finally succeeded, a DIVERGENCE pattern had developed in the 5/3/2 Stochastic.
A new high that can’t even hold for a single three minute bar is a pretty good indication we are going the opposite direction - right down to yesterday’s close.
[…] For those of you discovering the site for the first time, or wanting to examine just how well these techniques have worked over the course of a year, follow this link to the original post from August 17th, 2006, and you can use the “Prev/Next Posts” above each commentary to look at almost everything I’ve written on this website. […]