Major averages closed the week below key support levels last week. This is important because it shows that even though put buying has been particularly heavy, options buyers actually made a small profit when this month’s contracts expired on Friday. This shows that sellers have power here.
Nevertheless, the market is in a minor trading range here. It continues to work out the B leg of the A-B-C correction. It could break lower this week, or it could continue to range again like it did last week. There is no really great way of timing these things. We continue to look for another leg down and evidence continues to support our views.
1 comment:
today the dax (german index) is making horizontal line since the market beginning. it is a typical muster of dow's interday downtrend for several hours or even the whole day. i would recommand to short the dow if it opens higher than 12170. or you could short european indizes now at once. regard,wez.
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