Last night action wasn’t what I expected as the rally did not follow through. Yet, there was a strong rally for most of today’s afternoon. 1995-2010 is still the zone I see resistance in. The pattern does seem rally awkward to me. I’m not as confident as I would like in the below counts.
Last night’s overnight action was really awkward. We had a rally into the close at 4pm yesterday, but then it didn’t folow through in what I expected as a 3rd wave. Instead, what happened is what I label in the circle as “no clue.”
It’s possible that the rally into the close today was the top of a 3 – so we still have a wave 4 and then 5th wave then could happen overnight or tomorrow.
We are now at the resistance zone for the Russell – this 1075 level was prior support back in August and October. We’ve rallied from 938 all the way to 1075 with almost no breather. That said, the pattern appears strong as the last 3 days gave 3 big green candles – bigger than the rest of the rally from 938. So these 2 conflicting signals are difficult to reconcile. Will have to see how the pattern forms tomorrow.