A strong move higher on Tuesday morning brings this chart into a very interesting daily resistance zone. If we believe the 5 wave sequence is complete then we should push higher into a wave B. The B wave attracts the last of the bulls who will soon be disappointed as price fails to go higher and then rolls over. Today we are seeing a brand new buy signal on the Pro-Trading System which could carry prices above 13,000. We will be watching other Indices closely and then look for the B wave to complete on the DAX for potential short red PTS signal. This could then could complete a wave 5. The other option is that it could be a 4th wave pullback to 38.3% fib and we go on from here to make a 5th wave. Long trades for now but if this an ABC then we are going to see much lower prices.
Updated at 5pm. The PTS has not confirmed the buy signal. You would see a green candlestick if so. Lets wait to see how we close this evening.
Updated at 5pm. The PTS has not confirmed the buy signal. You would see a green candlestick if so. Lets wait to see how we close this evening.
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