Hi Average Joe,
Thanks for the chart and interpretation. Did you really mean 'dead cat bounce' by it's normal definition? I notice a lot of posters use it to mean a failed recovery, but the extended definition of DCB as I know it, has two other components
-the low after the bounce is lower that the previous low (not the case in your chart)
-the DCB signifies that the downtrend is ongoing (sounds like from your commentary that you think it will go sideways, then maybe up)
Sorry to be a pedant, but the term DCB puts fear into my heart, and I don't think that we have legitimately had one of those this week.
"A dead cat bounce is a price pattern used by technical analysts. It is considered a continuation pattern, where at first the bounce may appear to be a reversal of the prevailing trend, but it is quickly followed by a continuation of the downward price move. It becomes a dead cat bounce (and not a reversal) after price drops below its prior low. "
