I am showing an intraday chart of the Dow Jones Investment Services Index as it sports nice waves to better explain my point that for one the long term rally is not over. Look at the recent decline. Perfect ABC
down. A counter-trend move implying more upside action to come. Secondly very short term, the bulls are running out steam. At best we have a final sprint
towards 1175-1180 on Tuesday before we start correcting the advance from the recent panic low. How low I don't know but if this idealized scenario plays out, we will not move back below last week low.
But we can also start to decline right away leaving us with a ABC
rally that would suggest pretty much the same. The only difference is we could move past recent low in a double Zigzag
. Could be bullish
triangle too. Just too early to tell.
Always fascinating to see these patterns unfold before our eyes.