Lots of interesting things happening here. The market had the opportunity to form a triple zig-zag, and the Fibonacci Time Ratio was setting up perfectly as well. It’s failure is a sign of weakness. Minute [ii] has already lasted long enough in terms of time and has retraced 50% of [1] in classic ZZ fashion. The last half hour certainly felt and looked impulsive, but it does take some creativity to label a leading diagonal offthe high.
I’ll add that volume has been on the light side for the past two down days, but it was a holiday. I’m prepared for an immediate breakdown, but I have enough on the sidelines if rally towards 1125.
I definitely like it. I think we have seen the top of the small little 2 day rally, and with a break of 108.40 on the SPY my guess is lower we go to test that channel. Btw, what index is the chart of up there?
Wilshire 5000