Yesterday I discussed how we might have been in a small triangle yesterday. And despite the strength this morning (by being over 4000 and over the 50-day SMA), I also discussed how I wanted to wait just a tad longer before becoming too bullish, as we’re nearing an important trend line.
Looking at that, I want to note a few things. IF yesterday’s price action was not a small triangle (the little “E” wave is a bit small), we may also count everything as A-B-C, 3-wave structures, and there is a whole host of wave balance at this trend line.
IF the bears are going to take back control, this is one place they may do so, so I would like to see what happens here. I have averaged down the puts I rolled up this morning, it’s not a huge position, but I want to see if this trend line will produce a negative reaction first.
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