Short Term Trading Member Forum

[techcharter]

Dead Cat Meow Bounce.

The german DAX gapped up today and consolidated in what looks like a triangle before another huge rally into the day's close. Triangles signal the next wave of the same degree as the triangle is the last in the next larger degree. So the DAX should head lower tomorrow, either as a new bear market motive wave, or as wave b of a longer consolidation.

The US markts made a more impulsive wave off Friday's lows. This raises the possibility of a flat which started with the election rally. This impulse (wave c) could be done, or it may extend. I think this flat is a wave 2 of smaller degree.

Let's see how the ABX (AAA mortgages) index behaves before calling a top. It rallied hard today.