Cough, sniffle, sneeze!
Cough, cough… Sneeze… Sniffle… Sneeze… Yes, folks, I am crawling out of bed to do a VERY brief update. As we all know, after Friday’s big move, we got little follow through. I may be wasting my time by saying what we all know to be the case. We are finishing up our bullish rally. Maybe just this leg, maybe the whole thing, but either way we are poised for a healthy decline after another modest push higher. That would give us seven moves waves higher from the 12/29 low which is commonplace for counter trend moves.
HUGE divergence brewing on the MACD on several time frames, indicating the coming decline is likely to be “the real thing.” Also a nice BB reversal set-up on the hourly (1/2 hour as well). The time is drawing near and complacency is starting to set in, so stay on your toes… A pertinent top could be near.
On another note, and definitely worth mentioning, ICE!! What a break-down today. This thing is monster. Since I missed a trend of any length for a couple of months now, I am delighted to see this. Previous lows are under 50, which is about a 30% drop from here. This monster drop also occured with volume (thank you), MACD divergence, and a turn up in a steadily down-trending ATR(10). Choose some nice options for this puppy as it will be big. One of the best looking trades of the new year IMHO… Enjoy.
And now I am crawling back to bed…