Tuesday 2/9/16

Price yesterday made a lower high, lower low and lower close versus Friday as we continue on the downside of the multi-week cycle.  Price today has opened below its daily pivot and is trading below yesterday's close.  The multi-week low is projected for 2/11, and the only question is whether price will take out January's MW low or if we will make a higher MW low and confirm January as a multi-month low.  As always, we will know that the MW low has been seen when price is able to close above the MD MA and turn that average upward.

 

 

 

The hourly chart shows price in yesterday's pre-market trading making a 24Hr high under daily pivot resistance and falling sharply until mid-afternoon when price found its 24Hr low.  It was mentioned in yesterday's blog that with price on the downside of its daily, MD and MW cycles we should expect "a very negative day", which looked like a gross understatement until the last-hour rally pared losses to only, well, very negative. 

 

It appears that price found its 24Hr high several hours ago, again under daily pivot resistance. This is behavior indicative of still being on the downside of the multi-day cycle.  The 24Hr low is projected for an hour before the close.  We are also due to see a MD cycle low.  It is possible that price will make an early, higher 24Hr low today which would confirm yesterday's low as the MD low; if not, the odds become higher that the next 24Hr low will prove to be the MD low. When the low is in, the 24Hr MA and/or daily pivot will cease to provide resistance to price and price will test the MD MA in search of its MD high.