The daily chart shows price yesterday making a
higher low, slightly higher high, and slightly lower close versus Wednesday's
candle. Thus far today we have seen a higher high but are little changed from
yesterday's close. Price is still riding on the upside of the MW, MM and highly
likely the MY cycles. A multi-week high is not projected until 11/4, but with
the MM high overdue and price running deep into double-top resistance from the
May and July highs, it is unclear whether price will hit an all-time high during
this MW cycle or will have to wait until year-end.
A new all-time high in the days ahead would
certainly be a narrative more to the Government's liking as they struggle with
anemic economic growth heading into the heart of the consumer shopping season. Failure to reach a new high in this move would create headlines of the
near-mythical triple top, which would serve only to further dampen consumer sentiment. While this certainly sounds like I am a conspiracy
theorist, with the stock market only one decent day's performance from an
all-time high, it would be foolish not to game the headlines.
The hourly chart shows price yesterday making its
24Hr low in pre-market trading on daily pivot/24 Hr support and rising
throughout the day until finding its 24Hr high last night. We find ourselves in
much the same situation today, as price found support at the 24Hr MA two bars
ago in the timeframe for a 24Hr low to be seen. The only difference this time
is that we are in the timeframe for a multi-day high to be seen, and it is
always possible that the overnight high was the MD high. If so, we would expect
to see a lower or equal 24Hr high this afternoon followed by price breaking
below daily pivot/24Hr MA support.
No comments:
Post a Comment