Textbook stuff, although the persistent low velocity not what I expected today at all. There was only a single minute bar at 16:46 I think with any decent scurrying. Still, we got the usual reasonably wide expiry range allowing the big folk to offload various (option) positions, no doubt to their advantage.
H&S target almost met with 5 waves down, a few points shy as the lower channel line A took early precedence and anyone who wanted to buy the obvious 920 support was denied. Note how when point x had printed one could draw a parallel line B from the high which perfectly contained the tricky wave 4 pullback of the afternoon down trend. The Dow seems to adore parallel channels. Pullback just exceeded a 1:1 when compared to the previous (wave 2) one, adding conviction those considering a short around 10965. There was also a nice low-risk entry indicated by the inverted hammer which formed the top of the right shoulder arouind 16:30.
Once the neckline was broken, it was mean of them to not just kiss it on the test, but take out a few stops in the 960-965 area instead, but then the market is like that. She likes to hunt the obvious. 🙂 Red and yellow horizontal lines are pivot points.
Have a good weekend everyone.