Reportedly, the Europeans sold off overnight out of uncertainty of what today's job report would bring. And by most accounts it was a market friendly report with decent gains accompanied by moderate wage growth.
In the event, this set up a nice long at support with either a bat or Gartley pattern. The uncertainty stems from the Fibonacci relationships as the pattern shown does not meet the often prescribed mathematical relationships but does feature the ideal bullish contours with C lower than A and D higher than X.
And I claim little expertise as I have only recently included harmonics in my trading, which until recently, has been largely placed on market structure and known levels of support and resistance. Thus far, my experience with harmonic patterns has been favorable.
While over the longer term I am a bit bearish, I trade with the prevailing trend which has been up even though oil prices are correcting, a breakdown in correlation undoubtedly a result of Yellen's very dovish comments.
Sooner or later, though, its likely the correlation between oil and equities will be reestablished placing pressure on the market at a time it is pushing into fierce resistance. Further, April has not been kind to the markets in election years and Hurst cycles are working against us.
Lastly, we have experienced four consecutive quarters of declines in earnings with margins contracting. Everybody has made money being long, but I hold deep reservations about how long this can continue.
In the event, this set up a nice long at support with either a bat or Gartley pattern. The uncertainty stems from the Fibonacci relationships as the pattern shown does not meet the often prescribed mathematical relationships but does feature the ideal bullish contours with C lower than A and D higher than X.
And I claim little expertise as I have only recently included harmonics in my trading, which until recently, has been largely placed on market structure and known levels of support and resistance. Thus far, my experience with harmonic patterns has been favorable.
While over the longer term I am a bit bearish, I trade with the prevailing trend which has been up even though oil prices are correcting, a breakdown in correlation undoubtedly a result of Yellen's very dovish comments.
Sooner or later, though, its likely the correlation between oil and equities will be reestablished placing pressure on the market at a time it is pushing into fierce resistance. Further, April has not been kind to the markets in election years and Hurst cycles are working against us.
Lastly, we have experienced four consecutive quarters of declines in earnings with margins contracting. Everybody has made money being long, but I hold deep reservations about how long this can continue.