Wednesday, March 20, 2013

Fibonacci Ticks 233-6765 TTM

The squeeze indicator was coiling all morning leading up to the Fed announcement. We shot up initially but that was followed by a bearish engulfment that has taken us right back into the squeeze. The importance of being back in the squeeze is that the wave indicator is now under us, having turned negative, which indicates the break in price direction this time will be down. So it appears the break from the squeeze going forward is going to be to the short side as the wave has now turned negative. In the squeeze earlier today that had been building all morning, the wave was positive and price followed. The situation has changed. It can also be considered that the squeeze that begin in the morning is still building and the break from this one should be of a much larger magnitude.