The NYMO cycle is technically still DOWN.
We got a sharp rally from the Oversold Zone but only one positive close.
The model calls for two closes to declare a cycle change.
That said, NYMO is holding up pretty well after yesterday's bloodbath.
A rally from here could readily confirm an up cycle or we could see a strong positive divergence if price breaks the 9/06 low but NYMO doesn't.
So, despite bearish price action, under the surface things don't appear quite so bad.
When NYMO hit the Oversold Zone, an edge was set for price to move to the middle keltner band.
That has been satisfied and was done in short order. From this perspective price can go either way from here.
We have 8 gaps above and 3 below. There is a fair distance to the nearest gaps. So, can't say either up or down will act as a magnet for now.
In my imagination it is plausible that the market may want to spend a little more time around the middle keltner before taking a trip to one of the outer ones, but I don't know what will happen.
Perhaps most interesting is we are seeing a fourth touch on a rising bottoms line under a bigger declining tops line that has three touches.
For now, the rising bottoms line can be considered a bear flag. So, bulls need to make a stand here. Let's see what happens after OPEX.
I remain flat with no trades on deck.
I had long setups trigger Tuesday, but I was away all day and did not put things on autopilot.
If executed, they would have taken scale profits and breakeven stopped after CPI.