Counter Trend Moves…What’s Next?
This week’s trading was featured many strong counter trend moves. Many of the markets saw swift turnarounds in trends that have been established for weeks and months. Th 64 million dollar question is; “What’s Next?”Here is what I’ve defined as established trend and counter trend moves.The following markets are share the following traits:
1) They are all near their respective 13 week highs or, lows. The market began within spitting distance of its recent extreme.
2) Their weekly sentiment readings are > 70 or < 30, respectively. Each market has a large, one sided public following.
3) They’ve experienced a large 5 day counter trend move. …