After nice signals yesterday, the market wouldn’t cooperate today. We continued yesterday’s closing decline, but none of the turning points matched the Fib levels I was watching.
The first pullback didn’t even reach 38%, and the final decline reversed before reaching a 62% A-B-C. By the end of the lunch hour I though we had a reasonable triangle forming (in yellow), but the upside breakout had no volume increase so I didn’t trust it.
The reversal about 10:30 (Pacific time) was the only good Fibonacci turn of the day. It completed an A-B-C at the 62% level which also matched a 38% retracement of the morning drop. But by that time the moving averages were definitely sideways, so I didn’t even consider a trade.
About the only thing today shows is an example of not forcing trades when the signals aren’t there. We have a fairly well-defined rectangle with this afternoon’s sideways action, so perhaps we’ll get a tradable breakout and pullback in the morning.
