Markets hit important price target that may be pointing to the next big move...
Today we saw a big price drop right from the open on the news that Corona cases are surging and that Connecticut, New Jersey and New York have 14 day quarantines for any visitors entering from the new hot spots. However, that news didn't go away 3 hrs after the market opened yet prices stopped going down and rallied the rest of the day. The point of rehashing what the market did today is to show how fundamental events create short term reactions in the markets but that technicals are really what controls price movement. To clarify....today's low price had a Fibonacci price relationship to a previous move the market made where wave (c) down is 1.618 times the (a) wave down. This is the reason traders stopped selling! This price relationship has the possibility to confirm a major Elliott Wave chart pattern that will start a big rally. However, if today's low can't stop the selling it will confirm the next major move down. The very small interval wave structur...