Because as of now, price action is what needs to be watched. At a certain level of decline, which I'm not sure where it will be, the Judo Concept will kick in and we'll see heavy volume near vertical drops with small corrections between each leg. Given the VIX data, we'd need a pretty big water fall crash soon to see the VIX's volatility rise to the levels 3C was showing, but who knows. If the slow march down continues, at some point the longs that entered above $113 will realize that the breakout was false and will begin selling. We are already seeing heavier volume, this I believe to be retail money as institutional moves are quiet.
Where in a bear flag right now, it will be interesting to see if the market maker lets it continue as technical analysis would suspect or if there's a false move. If they let it continue as traditional TA has taught, then I'd say that they are openly influencing the market and encouraging sell side pressure.
5 years ago
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