Replies to post #53825 on Options Wonderland

[I Like Bottom Fishing]

$RUT CHART 630.46

V/S
$COMPQ CHART 2234.22

[dalcindo]

Re: $COMPQ

Yes, it does really look good the way you described it. There are several ways to look at the same chart with different indicators.

For my risk management, I view the RSI as weakening so for (not that it may surge over the next few days), and this is occurring at the significant Fibonacci level of 61.8%, which can certainly be considered a pivotal point where a new direction (bullish rally from hereon) or a renewed decline can occur.

A better definition of the market direction should occur over the next few days. For my risk aversion, I consider the current trend a bearish one with an important Fibonacci retracement worth paying attention. So far, price has validated that ultimate Fib level and continued downwards.

Thank you for bringing your chart up - Your side of the argument makes perfect sense.

- Dalcindo