Still Room to Decline

Still room to decline

Today the market liked the positive side of the line, which was expected from the 4 hour chart score yesterday.  The Daily and RumWave scores are continuing on the trend of getting "less bad".  However, I would not be surprised by a resumed downward trend tomorrow or Thursday.  Overall, I am still in a HOLD status on my short 3x ETF.  

DJIA 4 Hr Chart
The 4 hour chart above shows a nice wave pattern on the most recent decline.  It seems apparent to me that there have been two waves down.  I expect a third leg according to basic Elliot Wave principles.

DJIA Daily Chart
The Daily chart above shows no signs of bearish sentiment letting up.  Still plenty of room to decline here, especially when we consider the levels on the slow stochastic and the %B studies.

Reader Requested Scores
The reader requested scores are shown above.  Of the three, FLEX looks like it has the best opportunity to move higher in the next few days.  I like it when the Daily and 4 Hr chart both look green.  Important to note, however, is that they are not the "most green" that they could be.  It is difficult to determine that just by looking at one day scores... unless you built the formulas... which I did.

For my AAPL fans (and I know a lot of our readers are using Macs and/or iPhones to view the blog) the 4 hr looks OK, but I wouldn't be a buyer here based on the yellow return on the daily chart.