Tuesday and Wednesday I said the market wasn't gong to be able to break resistance without a pullback first and there needed to be accumulation during that pullback.
This s the period of the pullback on a 5 min chart and as you can see, we've seen some positive divergences through the lateral areas in yellow, in fact the most recent pullback in FAS today, produced a 5 min positive divergence as can be see at the white arrow. The Greek debt rally yesterday was a bit of a set back as institutional money isn't going to chase higher prices. I pretty much prefer that bounce didn't happen although I know some of you made some money on it. I'd actually like to see this progressing a bit faster then it is and I'd be curious to see what this chart would look like devoid of yesterday's afternoon rally.
I'll continue to monitor the situation, I do like the positive divergence just made on the FAS pullback on this 5 min chart, but ultimately we need to see these divergences on a 15 min chart before the market is ready or willing to make another move against resistance from earlier n the week.
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