Today price action in EFA hurt badly and might be the death sign that we did not want to see. Bailing out has not fired but what did fire is a lower pivot high. So when you have a pivot high and then a second pivot high that is lower than the first, you connect the tops and you hav yourself a short term down trend line. Key word is "down". I have been following this index with a fine tooth comb because if it is going to turn lower, it could be the catylst that stops the uptrend in the rest of the market.
These are the exact signs we look for in a top. Not a rumor, not your buddy, and definately not TV. Problem with TV is their telling the news as it is happening or after and that doesn't help us. So looking at the chart below, look for the yellow circle and red down arrow to find the lower pivot high. I did not draw the line because tomorrow is the last trading day of the week and I will make adjustments over the weekend. Right now just know that it is there, but the CBL, primary uptrend line, and 50 day moving average are all safe tonight. Tomorrow? Who knows.
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