From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley
Thanks to everyone who participated in last week’s Mystery Chart.
We questioned whether this consolidation would resolve in the direction of the primary downtrend–in which case we would expect a break lower.
Or maybe buyers would step in and defend those former lows once again.
Despite the lack of bearish momentum readings, many of you wanted to sell on a break below support, citing the primary trend as a major deciding factor.
And that’s basically where our heads were, too, as it’s always easier to go with the trend.
So what are we selling? Or should I say… buying?