Does it really matter if IYR’s channel is at -99%, or -93.5%?
The sector’s going down fast; that’s the important part.
Unless there’s some kind of decisive, high-volume break to the upside, we’ve got IYR in a confirmed trading channel, declining at approximately – 93.5%, on an annualized basis.
The morning gap open in IYR, was higher as expected; sated in the pre-market report.
However, instead of reaching the 100%, ‘a-b-c’ target, where wave ‘a’ would be equal to wave ‘c’ (a common occurrence), the gap higher only reached a 61.8% target: indicating significant weakness.
The daily chart, has the situation as of 11:30 a.m., EST
Real Estate IYR, Daily
One thing that’s not happened yet … there is no new daily low for IYR.
It has not posted below yesterday’s low of 93.70.
That’s about the only factor that remains as potential upside for the sector.
If yesterday’s low is penetrated, then it weights probability significantly to the downside (not advice, not a recommendation).
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The Danger Point®, trade mark: No. 6,505,279