Contra Contra Contra

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Keeping one's morale up during a trio of days like this is not easy. Far from it. But we must keep our wits about us and see what the charts are telling us.

Looking at the MidCap 400 chart below (this is a minute bar chart), I draw a few general conclusions (a) we are still in the same downtrend that commenced June 11th (b) we have made a series of lower lows and lower highs (c) until and unless the market pushes above the circled area, this medium-term downturn remains in place, in spite of the massive strength we've seen so far this week.

0715-mid

The unfortunate thing is that a day like this may well be a great day to get aggressive on the short side, but the week has been so damaging so far that it's hard to put those trades out.

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