Professor’s Comments January 19, 2021
Posted by OMS at January 19th, 2021
Markets were closed yesterday for the MLK Holiday. Overnight, the futures fell and then rallied, typical of wave 2 action. The Dow futures are currently up about 170 points.
In my WSR, I talked about the possibility that the Dow could rally today to complete wave 2 up.
Friday was options expirations, and the markets staged a late afternoon rally. Retracement rallies on options expiration Friday are usually not a good sign going forward as they tend to lead to lower prices during the next few sessions of the following week.
Watch the short-term indicators. If today’s early rally is indeed the completion of wave 2 up, wave 3 down should be next.
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Not sure of the terminology we use? Check out these articles
The Hockey Stick Pattern
The Creation of Waves and Trends
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Category: Professor's Comments