Yesterday I began talking about swing trading and I forgot to mention something. Swing trading relies on the basis of market swings making higher highs and higher lows or lower highs and lower lows. What I forgot to mention was that there is a very clear bottoming pattern that pertains to swing trades. This pattern emerges out of an existing downward channel and consists of the swings failing to put in a lower low. We could still go further down or we could go up. For confirmation of the swing we will be looking for a higher close than the previous peak which we put at the 1210 level. As before, if this plays out we would be looking for five minute waves to form the second wave of the larger count.
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