BarroMetrics Views: Bear Market? II
Yesterday we saw the preliminary confirmation that we have seen a 13-week swing high at 2134 basis the nearest futures month for the e-mini: we had a daily close below the 2-4 trendline in 10 bars (see Bear Market?).
The next two benchmarks:
- A daily, bearish-conviction below the H&S neckline (Figure 1) and
- A daily, bearish-conviction below the Wave IV low at 1831.
The final confirmation will be a daily bearish-conviction close below 1779 (Figure 1).
Other factors impacting the bear case:
- An inability to rally to relieve the oversold condition; and
- Yesterday, we saw attempts by some FED presidents toning down the rate rise language - all to no avail.
Let’s see what happens when we have a bearish-conviction close below the neckline (coming in around 1831.16)
FIGURE 1 13-week E-min