The 1h chart above shows that the rally from $14 was a very sharp 3-wave rally (corrective), followed by a 5-wave downtrend to just under my $17.25 buy point. Price then corrected upwards in a choppy fashion, followed by a fast and sharp break of the uptrend line. I find it interesting that financials diverged with SPX and $INDU: both indicies made a new uptrend high while financials failed to do so. Perhaps more declines are in store, so I'm sitting out for now, even though MACD divergence has been confirmed on the weekly chart.8/13/2008
Out of C
I have closed out my long position on C. As I posted here, the market is looking toppy, and C failed to form an impulsive uptrend. You can see my last post on C here. I closed out around $18.40 on the break of the uptrend line.
The 1h chart above shows that the rally from $14 was a very sharp 3-wave rally (corrective), followed by a 5-wave downtrend to just under my $17.25 buy point. Price then corrected upwards in a choppy fashion, followed by a fast and sharp break of the uptrend line. I find it interesting that financials diverged with SPX and $INDU: both indicies made a new uptrend high while financials failed to do so. Perhaps more declines are in store, so I'm sitting out for now, even though MACD divergence has been confirmed on the weekly chart.
The 1h chart above shows that the rally from $14 was a very sharp 3-wave rally (corrective), followed by a 5-wave downtrend to just under my $17.25 buy point. Price then corrected upwards in a choppy fashion, followed by a fast and sharp break of the uptrend line. I find it interesting that financials diverged with SPX and $INDU: both indicies made a new uptrend high while financials failed to do so. Perhaps more declines are in store, so I'm sitting out for now, even though MACD divergence has been confirmed on the weekly chart.
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