Posted on 10/23/2017 7:07 AM by Dave Toth
Fri’s clear relapse below the preponderance of the prior three weeks’ 125.02-to-124.31-area support nullifies the bullish divergence in short-term momentum discussed in 16-Oct’s Technical Blog and reinstates the downtrend from 08-Sep’s 127.285 high. The important by product of this resumed slide is the market’s definition of Thur’s 125.16 high and 13-Oct’s 125.255 high as the latest smaller- and larger-degree corrective highs we can now require the market to sustain losses below to maintain a more impulsive bearish count. In this regard 125.16 and 125,26 are considered our new short- and longer-term parameters from which the risk of a bearish policy and exposure can be objectively rebased and managed. Former 125.02-area support would be expected to hold as new resistance if the market has something more bearish in store for us ahead.