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Wow! A Big Down Day on Opex

A Big Down Day

 Well the market did’nt disappoint us today. (unless you thought it would continue up). After attempting to continue up in the overnite market, the futures found resistance and failed then started a wave[3] move  down that continued throughout the day ending  to finish what appears to be a five wave move ending up minus 230 points.

Pre-market I said look at the prior days low to watch for either  a bounce there or guage the momentum. Look at the big red candle in the chart. Lot’s of momo there, it didn’t even pause and continued on down to the 38% retracement that I had noted as the next target. It reached that level and paused for a couple hours developing into a wave iv barrier triangle (P50 EWP) and then continued on down to complete wave v at the lows of the days where it found the fib grid snow line and bounced.

I’ve also noted on the chart that in addition to the snow line, the low was also right at the 1.618 fib extension of the wave i,ii projection. When I find these fib extensions line up the way they are on this move, for some reason they make powerful targets. They didn’t disappoint today. Price bounced from these levels prior to the close, so I would expect the bounce to continue into Sunday evening and Monday.

I will take a closer look over the weekend and post an outlook before the Sunday nite open.

Have a great weekend.

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