So far we bounced off the top of the ascending wedge pattern Friday late. This morning we opened right at the bottom of the wedge. We drifted lower and ae now sit about 10 points under this line. I am waiting for us to test the line again from the bottom and get rejected. That is when I feel another perfect spot to open up new positions or add to existing ones.
My gut tells me that every bear in the world is looking for the same scenario. This tells me we may not get it. The bears have been kicked in the ass for weeks trying to pick tops. Now we are scared and waiting for the sure thing. I am quite sure the market will not be so kind.
Going forward I expect selling to accelerate over the coming weeks and volume to build. Right now prices are falling on a lack of buyers. Sellers have not stepped in yet cuz of what I just said about picking tops. Once the sellers step in, volume will pick up and the "buy the dips" crowd will run for the exits. It should be beautiful.
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