The EWI "line in the sand" was DJI 10,594. That is the 6/21 high and their Minute2 high. I sold against this high thinking this was a good place for a short-term correction to begin. Then the manufacturing data came out better than expectation and the market extended higher to 10,667. The postings have repeatedly emphasized that the EWI count was wrong and I1 sentiment would carry the market higher. I am waiting on the pullback to Fib 38.1% to re-enter on the long side. I'll trade on the long side during the rising I1 until the 30-minute SP futures M/A is broken by .5% on a 30-minute close. The cash SPX 38.1% is 1113 and 50% is 1109.37.
The SP futures 150-day M/A is at 1119.67, which stopped the rally. Due to this the pullback should retrace every bit of 38.1% and then some.
No comments:
Post a Comment