Last 2 days we have reached the top of the downward channel that commenced at the start of May so some resistance was expected.
So far it looks like we have had a double zigzag correction hence the ABC X ABC labelling. It is of course possible and not uncommon to have a triple zigzag correction which would mean another wave A down, wave B up, and final wave C down (within the channel) before we get a major rally. Personally I don't think we have seen a strong enough rally off that expanding diagonal triangle just yet (as mentioned in my last post and shown above) so I think today's sell off is just a correction before the rally resumes.
We certainly had a strong sell off tonight after the FED's press conference - Mr Bernanke sure knows how to move the market!
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Uncle Ben up to his old antics ............