Much of yesterday looked hopeful for some sort of bullish response, but the day ended badly and most leaders closed near their lows.
On the face of it that sounds as bad as it looked. However, many of these bars are in fact Doji type bars and we are still in a ‘zone’ of potential support. The July highs have been breached but we are in an area of considerable congestion which I’ll show in today’s video.
Furthermore some railroad track setups have also popped up which I’ll also outline.
So, among the gloom there are rays of light. The key is some sort of resolution to the uncertainty, but when two of the biggest research houses (Bank of America and Citigroup) are miles apart in their assessment of what will happen, then what hope the rest of us!
You can read as many commentaries as you like, but regardless of how powerful each argument will be, you’ll end up confused because they’ll all be at odds with each other.
Therefore the only way to play this situation is to trade what you see using the OVI and our favoured chart setups. If you don’t like what you see – and there’s no problem with that – then it’s totally fine to sit this out until the drama is over.