ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
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One of my principles, backed by observation over the years, is this:
"When the market gaps down, and then trades up to a point that there is a swing high below the gap, there is generally at least another strong move down for the day. Gap (or strong move) plus mid-day consolidation equals late afternoon continuation."
This would appear to summarize today in a nutshell. The lunchtime rally so far has been pathetic. The market has wedged into a giant triangle and is right now in consolidation.
Strong move down + consolidation = good chance of continuation. When this so-called rally ends, anticipate continuation.
As always, trade what you see, not what you think.
"When the market gaps down, and then trades up to a point that there is a swing high below the gap, there is generally at least another strong move down for the day. Gap (or strong move) plus mid-day consolidation equals late afternoon continuation."
This would appear to summarize today in a nutshell. The lunchtime rally so far has been pathetic. The market has wedged into a giant triangle and is right now in consolidation.
Strong move down + consolidation = good chance of continuation. When this so-called rally ends, anticipate continuation.
As always, trade what you see, not what you think.
jeeze louise..........
the market is suppose to go down.... isn't it?!!
the market is suppose to go down.... isn't it?!!
One bright spot: the 10-year has not done up in sync. Iow, there has not been a giant pile on into fixed income.
Quote from mbusch:
IHS projects rise to ~1403, which is still well below swing high of 1407. So IHS could fulfill its upside target and then the downmove could continue. In that scenario, both of you would be right.
That is exactly what I would see as the most likely probability today:
a move to 1403-1407 (even an Wyckoff upthrust above 1407 to 1409, a 50% retracement), and then massive, ruthless selling. A total washout.
Market hit a new 3-hour high and hit resistance. More supply than demand, at this point.
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