The same theme as Friday: A recovery open is sold into and the market drifts back lower.
The market is unable to hang onto gains within the declining channel and repeated attempts to rally result in strong selling into the close.
Sell Signal still active and now challenging the important 2800 level again.
Note that the market has consistently sold into the dramatic bursts of buying and this is a characteristic of action below the important support levels.
In effect until the market resolves its problem with price this process of strong buying and selling will continue and the zig-zagging lower will continue. We are currently within the left-hand side of a larger structure that is under construction, and will eventually result in a new large T and a strong bullish phase.
Whilst a Sell Signal is active we will continue to watch carefully for signs of an established low and a new structure emerging.
Be prepared for whatever is coming next, and trade with confidence:
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Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.