Monday, February 10, 2014

Is the COMPX showing an ending diagonal?

$COMPX is now right at the 61.8% retrace.  This is about as far as it usually goes while still maintaining the original direction (unless the first wave down was an ending diagonal which COMPX was not).

So is it just coincidence that the chart kissed the 61.8% today AND hit the 5th rail with a small throw over?  Likely not IMO.  The COMPX could be signaling that the bear market rally has run out of steam right here.  A higher high than that throw over will negate this view.

Armed with technical evidence as to a completed wave and a trigger point for my stop loss, it's back into TVIX for me.



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