The market opens at all time highs and initiates a retracement.
A slow but persistent day of selling displaying a distinct lack of buying power – the effects of an Echo high* and an important peak projection of the T structure.
How much of a retracement is required remains to be seen, but for now, the market is still well above the Buy signal line, and additional peaks are projected for later this week and into November.
It looks to me that we are now entering a period of sideways consolidation that could see additional highs and lows as the market defines its new upper range, whilst building energy for the next move.
* This is the first of a series of echo highs projected from the August period. For more information please subscribe to the daily updates.
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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.