When we take a look at the leader, or the DOW JONES Transports, we can clearly see that over the last few months, we have been in nothing more than a slow and steady grind within a rectangle range. You could say that we have been stuck in a box, and currently at the 5000 level.
As the market sold off into the close yesterday, the tick was showing resilience and is still down in oversold territory, so again I would not be surprised to see some buying into the end of the week come back.
We are also following our rules about looking for a low the Thursday or Friday the week before the OCT expiration. That would be in the next day or so. :-)
Happy trading :-)
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