RUT Update 18 March 2020Quick Update
With Trend Price Target: 840.85
Counter Trend Price Target: 904.35
STD DEV: 784 - 1197
Why a counter trend price target? What does that mean?
28 Feb, 2 Mar, 4 Mar, 6 Mar, 10 Mar, 13 Mar, 17 Mar, 18 Mar the major indexes closed the day in the upper half of their bar/candle. This is a counter trend signal.
Generally, the price action will move to respond to this counter trend movement as a continuation from the day before. Then resume the direction of the trend.
Or if the trend is over, it will created an area of consolidation and trade there until it gains enough strength back to either continue the move with the original trend. Break the trend and reverse direction.
What does this mean for us today? Now?
We are in a black swan event as it is being called. A once in 100 years pandemic.
Self-Quarantine populations and work-force. Borders, non-essential stores, restaurants, and pubs are closed.
This generates interruptions to sales/product creation/supply lines.
However, the market has been pumping its breaks in free fall. It is doing that Tom Cruise panic grab at the side of the cliff and hanging by fingers. The dates listed above are days the indexes have been pumping the breaks.
We just might find uneasy footing on a small ledge soon.
