There are a lot of traders and other “commentators” calling for markets to put in a big reversal, a massive pop. To be truthful it’s rather deafening. As I discussed in the video last week and random other posts, the moves of the past six months have conditioned traders to anticipate the next move. Their fear is projected on a chart and moves are limited in their view.
And they have a reason to be nervous. We all do. This market has been one whipsaw after another. But with the model, I continue to see no basis for such statements. I see resistance holding and no downside momentum loss. That is all I need to know.
Days like today, though nerve wracking, came right into resistance and moved lower. That is how a phase 2 move should look. And so far that is how it is looking.