Recap and Review of the last week:
Tough week that was difficult to interpret. On Wednesday my 60-minute system received a cover short/establish long signal. I was expecting a lower low but instead what we got was a double bottom. On Thursday I was second-guessing that call based on some observations and I was observing an ending diagonal take shape. I was theorizing that a breakdown of the ED might be a strong reversal signal. Instead the 'ED' (which was obviously misidentified) broke *up* and by 2:10 on Thursday the market had negated any kind of reversal setup and closed strongly. My thoughts on a possible reversal obviously did not pan out.
By Friday the 60-min Up Cycle Signal was issued as I discussed earlier in the week which means the sub-cycle buy signal issued on Wednesday is confirmed. Friday and today it continued to gain ground, which means that I am no longer expecting a reversal, and my 60-minute buy signal is firmly intact. As I said tough market to interpret.
For as tough as the 60-min timeframe has been to interpret this year, the Daily System has behaved like a champ. It has been long since Oct 11. It was not faked out by either the November or December or March pullbacks. It is still expecting a higher high above the April high before a sell signal is issued.
