The large sell off in the market was preceded by a downturn in my favorite risk indicator, the Euro Yen currency cross.
It appears we could see a bounce in the markets soon from very oversold conditions.
However, the risk indicator should be watched for any signs of significant reversal.
Such a reversal could suggest a move up in the market to form a possible lower high over time.
A second possibility is continued downward momentum, and the indicator would also move down.
We shall have to wait for the wishes of the market to be revealed.
It appears we could see a bounce in the markets soon from very oversold conditions.
However, the risk indicator should be watched for any signs of significant reversal.
Such a reversal could suggest a move up in the market to form a possible lower high over time.
A second possibility is continued downward momentum, and the indicator would also move down.
We shall have to wait for the wishes of the market to be revealed.
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