The retracement rally continues to be confined within a steeply upsloping channel. Yesterday's push up from channel line support was impressive, but does not change the big picture. The area between 23,500-24,000 is key support insofar as when it gets broken the dominant trend down will take over for the next leg down.
Next, the same chart with Fibonacci retracement levels. Note the color code of the candles and the expectaiton that the next leg will be red.
We should have gotten out of our short positions at the lows and bided our time waiting for the next leg down. Only no bells went off and the complexity and extent of this corrective rally has been a difficult read. What is clear is that a breakdown of the Wave 2 channel and then price breaking below DJIA 24,000-23,500 area of support will be the "bell" to get back aggressively short.
Housekeeping
(1) TSLA did close above $812 yesterday, confirming the Repeat Buy.
(2) It's time to add some Covid related Pharmaceuticals and Biotechnology stocks to the trading portfolio, starting with MRNA, NVAX and INO. When these trigger, expect a fast and furious ride.