Bulls Have A Chance To Steal Momentum

The inability of the markets to fall could put the bearish call in jeopardy. Everything still points down, but if we have a strong rally tomorrow it would take us back to where the timing signal went negative and ultimately could cause it to flip back up.  Right now we’re back in the congestion area indicated by the dotted lines.

Negatives I see with the Nasdaq:

  • The 60 minute chart shows a RSI that is stalling near the 60 area (just as it should).
  • Bearish wedge
  • Volume has been declining each day after that first strong day of volume

I expected the bounce on the daily chart at the 50 day ma and now we’re in a wait and see mode to see if this bounce is the real thing. Just to be clear I am still short.

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