The purpose of the operation here is a clean and simple 5-3-5 sequence to the downside which means the lows are still exposed to another flank attack from those accompanying bears.
This is a very important few weeks and months for volatility and in a roundabout way we must take full advantage of this while it takes place. I don't consider the manoeuvre here to be any different from the elementary operation we took at the beginning of the year in European Equities as we are in the same complacent environment with covid escalating out of control.
As we have discussed together before, the herd must always be wrong and recognising this and the misconception of the v-shapers can only lead to an eventual test of previous support. To the topside, invalidation will come via a closing breach of 3490/3500 as this is the level which is protected via its own barrier.
Thanks as usual for keeping the feedback coming 👍 or 👎
I really do appreciate your thoughts and your overviews. Thank you. Can you elaborate on your comment "a typical 5 - 3 -5 recession pattern". You can also give me a good link if you want...
possible and normaly I would agree but because of another lockdown and everybody expected a new downturn, maybe the market goes up for a CrackUp Boom
ridethepig
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Agree @StefanBode the herd must ALWAYS be wrong. Remember, the majority this time is still with the unaware 'v-shapers and 'buy the dip thinking its business as usual in a few months, covid has gone away and the Fed/Whitehouse combo has our back. Quite the opposite in play ahead of the elections.