For now price appears to be following the lower half of this fork. At some point it should transition to the upper half. |
My line in the sand is 1524 where I believe the top of wave 1 peaks. Any thing lower satisfies all the criteria for a downward continuation. The trend line from the 2009 low intersects the area near 1440. 1440 should temporarily provide a great deal of support.
The Volume Profile indicates that 1470 will also offer strong support and strong resistance near 1570. From now on I believe the Volume Profile will be one of our best tools for catching turning points in a rapidly falling market.
I consider my AD vs Price a leading indicator. It compares accumulated ratio of change between advance-declining issues with price. Overall it has shown a negative divergence since April 2012 and recently fell below zero even while price continued to raise.
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