actio-et-reactio
Balance is but a brief transition between extremes.
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Wednesday, October 01, 2003
1 Oct : Reaction Rally topping?
I've chosen the 135m ES-mini chart using Ensign software to review today. That this was a reaction rally is evident in the decreasing volume, whose weakness is also indicated by the down-trending Acc/Distribution line overlaid on the Volume.
The red down bisect finished during yesterday's late day run up and was pretty close to ideal. The yellow bisect I've drawn isn't at all "ideal", ie, price doesn't track the centerline. HOWEVER, it has a different use: it show bigger picture price velocity relative to two important pivots.
A gap-up or strong move tomorrow would give cause for continued bullish moves. Likewise, a weak move would signal there is no price velocity to overcome resistance and I would at that point promote the "ghost grey" potentially bearish fork. Note too the Fib 61.8 @ 1019 crossing the bisect.
Note: the bias says FLAT because the general trend is DOWN and the indicator buy signals are to be interpreted as counter-trend buy.
Labels: chart-analysis
At last, over the rim
of the waiting earth
the moon lifted with
slow majesty
till it swung clear of the horizon and rode off,
free of moorings
- Kenneth Grahame,
The Wind in the Willows
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