Sunday, March 24, 2013

Law of Vibration



The premarket Futures session began about three hours ago. If the market opens in a little over twelve hours at the current levels, expect to see considerable selling back to the bottom of the channel and possibly through it. Notice the symmetry between the action Monday and today's open. Just following the laws of vibration, price declined to the 38.2% extension and then climbed up to the 38.2% extension on the top side. The reason price has risen is the fact that the smart money is distributing and no one wants to be in long positions at these levels. Determined to sell, traders are getting out regardless of higher prices.

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