Has Risk Been Removed ?
The short answer is yes if you look at the EEM (daily) chart above (not advice, not a recommendation).
If this was a squeeze, and it has all the hallmarks, then price action will begin to erode …. quickly or not.
The good part, now it’s happened, it’s not likely to happen (exactly) this way again.
Prechter’s ‘rule of alternation’, effectively sates that what happened last time, will not happen this time.
EEM even now, is beginning to pull away from the resistance area.
It could still attempt to test. However, if it was short covering, those (stop) orders have likely been filled.
Charts by StockCharts
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