Stock-Market-Observations

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• Short Term
• July 2011 To Present
• Step 3 Down – Possible Termination
  
• Current Action Status – Buy Signal Possible Soon

In the current decline I can count 5 steps down from August 17.  The decline from August 17 is the step 3 that I have been anticipating.  The step 3 decline MAY have terminated at a double bottom.  See charts below.

Is this the end of step 3, or is this the end of step 1 in step 3???  I don’t know the answer but any rally with heavy volume that begins from this point will answer the question in a positive manner.

A heavy volume price surge at this point will trigger a buy point.  Any buy point MUST be accompanied by stops just below the lows of the day.

As I write this at 10:46 AM PDT, the market is going through a small correction that is providing another buy point for the venturous soul.

Worst case scenario is probably a decent rally that will provide very short term profits from this point.

08-22-11 DJ INDUSTRIALS 1 MINUTE BARS

08-22-11 DJ INDUSTRIALS 5 MINUTE BARS

08-22-11 DJ INDUSTRIALS 15 MINUTE BARS

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This entry was posted on August 22, 2011 at 10:48 AM and is filed under UPDATE. You can subscribe via RSS 2.0 feed to this post's comments. You can comment below, or link to this permanent URL from your own site.