Looming reversal or small correction?
Today I finally got a good confirmation for an impending reversal. Tomorrows jobs report could be a catalyst for a sell-off or it could transform this into a re-accumulation phase.
Personally I believe we are about to turn back down, but I will watch the support levels (1363 was the last high, 1340, 1335) closely to see if we will exhaust the move down quickly or not.
Yesterday the McClellan Oscillator printed one of the highest numbers on record, which calls for at least a sideways move if not an outright top.
There is a good potential for the blue curve (drawn last weekend) to unfold, so this down move could be limited. Depending on the reaction on the support levels, the yellow or the blue curve will be favored.
I will deliver a chart for this post later tonight. Not much time right now.
