We often advocate that news is merely the catalyst which serves to help dislodge markets so they can go in whichever direction sentiment was prepared to take them. Friday’s weak job report should have caused selling no matter what the overall mood of traders was. However, the broader backdrop comes into play in the coming days as we see whether this move has follow-through to the downside or whether the strong selling was the last exhaustion move before a bounce.
Remember, a bounce will come at some point and when it does, it should help us to fine-tune our view of the wave count. The mounting evidence suggests we have started a new downtrend and today’s videos update our current view on when we might see a bounce and how to identify it once it when begins.
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