I was off by just a tad with yesterday's analysis.
I knew we were about to enter wave iii down, which is a very strong move down (collapse)...However, the Nasdaq was not quite done with wave ii, that was completed with this morning's rally off the oil news. But if you notice, we hit the high of the sesssion at 6:45 (pacific time) this morning and then sold off the rest of the day. The tick high today was 2413.11 at 6:45 a.m., which barely took out the tick high of 2412.84 from Thursday (8/28), but the important thing is that it took out the 8/28 high and immediately and violently reversed. Taking out the 8/28 high (2412.84) made for a much more satisfying a-b-c wave ii, and the action for the remainder of the day was virtually straight down, to a low of 2338.37, a drop of 74.74 points. If I'm correct we are directly in front of a major financial hurricane.
With the drop in the stock market came the predictable drop in interest rates. A pretty sizeable intraday reversal.
Here's a 1 min tick chart that goes back to 8/27 thru today (09/02). Today's action is to the right. The high in rates on the TYX came at 6:12 am, 3 minutes before the peak in the Nasdaq.
No comments:
Post a Comment