SE Breaking down on big volume: Update on long term correction
Updated
The past few days we have quickly slid off the highs printed on Friday on some pretty large bear volume. The bears have broken any trend line that the bulls may have had and broke it with the conviction that the bears want to see closing at the low of the day. We have had bearish divergence on both the daily and weekly charts building for months at this point so this correction is just getting started here.
The weekly chart has also broken its trend lines.
Monthly chart is currently forming a reversal candle with a large upper wick. RSI is still in the mid 94's even with today's pullback.
Targets remain $129.63 for first target, then $103.44 as the next target.
Targets remain $129.63 for first target, then $103.44 as the next target.
Note
A relief rally ensued today to on the 1hr/4hr chart. From the entirety of the move down we came back and rejected from the .5 fib retracement. I added some more puts for January today and will continue to add with the thesis that the high of Friday is our top given all the developments. It also received a downgrade today and looking for more of that in the near future as we consolidate on the monthly chart.
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