Felt compelled to write this because a lot of ideas are claiming we've bottomed out and the bulls are back. False... at least the part about bulls. The bears are still in control and have been setting bull traps for the last few weeks and today is no different. Take a close look at the RSI
. Control changes hands when the RSI
touches the 70 near ATHs or the 30 near ATLs
. Since the bears took control, there have been dips below the 30 but no touches and now that it appears we're close to the bottom, the RSI
needs to touch 30 before the bulls take back control. In short, I expect at least another retest of $7,200 or $6,000 with an RSI
touching the 30 without crossing it before the bulls have control.