After a rise or fall in the market, I'm always looking for the three week test of a high or low to provide a launch pad to a trend change. As such, this week is expected to drift along with next weeks action being the true test of the closing lows. Since there is some tail (see circle area) the following week sometimes drifts into this area before moving to close the week higher.
With this setup in mind, what most often happens is that this week would close pretty much close to last week's closing price. I'll be looking for this little rally to add more to the down side. I am using SDS to play the down move. (2X play).
It's possible that we can get a big rally, that would be a B wave. More on that forthcoming should we successfully test the lows next week. I am hunkering down though for a move to the 2,000 level, my initial 50% retracement mark of the entire move from 2009.
With this setup in mind, what most often happens is that this week would close pretty much close to last week's closing price. I'll be looking for this little rally to add more to the down side. I am using SDS to play the down move. (2X play).
It's possible that we can get a big rally, that would be a B wave. More on that forthcoming should we successfully test the lows next week. I am hunkering down though for a move to the 2,000 level, my initial 50% retracement mark of the entire move from 2009.