We looked at the chart again today and reanalyzed. There are all the signs of a downwave so new positions or add ons are probably not in order right now. Right now waiting for the downwave to exhaust itself or to take us out is the thing to do.
This top shows classial reversal behavior. 10/27 exploration up and down. Up with close down, followed next day by power bar down, followed by gap and down day. On first looking at it we gave too much weight to the gap closing and thought the downwave would be very brief. But we didn’t get three days away from the low so there will probably be more downwave here. As we previously said, the trend stop is 5% under the lows of the week of 10/6.