So Armstrongs 1% rule worked , but it didn't if you wanted to trade it. Let me explain. Last Friday we elected two weekly bearish reversals on the DOW. The closing price was greater than the 1%. His rule simply states that if the election of the reversal is greater than one percent, prices will snap back to test the reversal. The idea then is to go long or short (depending on the direction of the elected reversal) with a stop on the other side of the reversal. Well, we snapped back to test the two weekly bearish reversals and any one with common sense would have been stopped out of the trade today with the upside move we witnessed.

So interesting the we did snap back, but disappointing that the weekly reversals were not stronger and did not act as resistance.

Side note: I do feel we will see some more weakness in the market and continue to fall completing C of the downward ABC pattern.