While I was already out of my long positions, I am equally looking for opportunity on the short side. Looking at today's action, it tells me that the bull was unable to make any further gain after yesterday's massacre. However, there was also not much follow on the downside. Could this mean more downside to come or could it be a rally in the making. I was searching for the definitive answer and i found it on the 60min chart for STI.
Looking at the entire rally since August 11th on the 60min chart, demand creeps off significantly after the effort to rally on August 11th. It signifies that investors/traders are cautious about longing in the current market. Although supply has not emerged itself in a huge and pronounced way, the entire market looks weak to me as there is no fresh demand to elevate the market higher. In the coming days and weeks, I believe the BBs will soon appear to lead us on the correct direction of the ultimate trend!
Ronald K
