Back over Line in the Sand

While many Elliott Wave or "technical pattern" posters on YouTube and other media were going off the rails over the weekend again warning of "the crash", we held back and tempered our opinion with a possible triangle (or, alternately, a diagonal) forming. We said, however, we would not begin an up count until price closed back over the "line-in-the-sand" or the 18-day SMA. It did that today in what is likely the 'a' wave, up, of the (d) wave up.

Look closely at the (c) wave of the chart, it made a new  lower low today, and then almost exceeded the prior bar's high. It still could as trading is not closed as this is being written. Today shows the importance of one of Ira's guidelines - which is not to enter new shorts below a lower daily Bollinger Band, particularly if the slow stochastic is not embedded below the 20 level. If that occurred today, the result would not have been pretty.

Again, today was a good strong up day. And, if this pattern is a triangle - or the alternate diagonal - then, after some backing-and-filling, price should try to hit that upper barrier line, or go through it - if it can.

Have an excellent start to the evening.

TraderJoe