MARarket CONonditions
Is the pullback complete?
Is the pullback complete?
We have a lot of material to digest, some of it perhaps outside the box. Let's get to the charts.
F-Fund: From the green to the red arrow prices have retraced 50% of the previous swing high/low and perhaps formed the first half of the right shoulder, in a Head & Shoulders formation (as outlined in the 3 circles.) AGG is in a long term Bear Market, playing a H&S on the bottom of a dominant downtrend is ill-advised, especially when you consider stocks are in a bull market.
Here's the best advice I can give. Don't try to catch a bounce in a Bear Market.
C-Fund: I realize there's potential for an Inverted H&S on many of the bullish indexes. If it were to happen, my current projections would take it up to 1430. I'm not on board with this pattern coming into fruition, especially on the stronger indexes.
But being right or wrong doesn't matter to me, making money does.
I've mentioned in my thread I believe the pink trendline is important. We are currently above this line, for me, staying above this line is bullish.
I-Fund: Those who know me know I love the tweezers candlestick pattern. Simply put, when candlesticks close together hit the same price level more than once and reject this level, its indicative of a reversal. I'm pushing this 6-month chart from a Daily to a 2-Day candlestick chart, so you can more easily see the patterns.
The yellow circles show prices hit the same level 3 times, I call that a Triple Tweezers Top (TTT.) You wouldn't see this on the Daily charts, that's why it's important to change your perspective view. Moving over to the right side of the chart we can see prices have hit and been rejected twice at 60.41 Pretty cool huh?
One word of caution for the Dollar's Bearish ETF UDN. This chart has a very steep Angle of Attack (AoA) and as such I don't believe it can be sustained much longer without some form of consolidation (a breather.) From the swing low/high/low each green box gets smaller as it climbs up the trend. Is it losing momentum?
Stay flexible and trade safe...Jason
