Posted on 8/21/2017 7:36 AM by Dave Toth
Since this (suspected corrective) relapse began a week-and-a-half ago we listed the 2423-to-2419-area as one of “interest” for a couple of Fibonacci retracement and progression reasons that we’ll reiterate below. We also warned however that such merely derived technical levels MEAN NOTHING when attempting to discern a prospective bottom or end to the slide without an accompanying confirmed bullish divergence in momentum on at least a major scale.
As discussed in Fri’s Technical Blog, the intermediate-term trend in the 240-min chart below remains clearly down with Fri afternoon’s and overnight’s continuation of this slide leaving Fri morning’s 2440 high in its wake as a micro-degree corrective high the market can now be required to recoup to stem the slide, confirm a bullish divergence in admittedly very short-term momentum and reject/define a low and support from which non-bearish decisions like short-covers and cautious bullish punts can be objectively based and managed. In lieu of at least such 2440+ strength the trend remains down and should not surprise by its continuance or acceleration.