I find it interesting that in the last few days, we've had people asking for help because:
- there is no trend
- there is a strong trend
The market always (or almost always) has it's 'tells' to give us hints about what it's going to do. At least some of them were within your question:
- when the market slices through strong support - it's making a statement (we just have to listen)
Back on 10.11.07, the Naz (which has been leading the mkt) had a massive engulfing candle w/ volume - complete failure at new hi's. Since then it has had some hi-volume days w/o ever re-challenging the highs (looks like funds selling to noobs hoping for more hi's). There were many other 'tells' about what was likely to come. This move should not have been a shock to any mkt watcher / trader.
From a daytrading perspective - how can you complain? The es / spy gapped down, made only weak p/b's (each w/ lower lows) until it hit the 50d ema. There it made a nice playable DB - then up to a nice, playable lunchtime DT - then it resumed it's strong pattern of lower lows & lower hi's - right on down to close on the 50d sma (& Naz closed on strong sup).
- one simple question I would ask myself: prior to 11am, what did you see in the price action to suggest a possible reversal?
While I have not yet had an opportunity to do more than glance at it, I believe Anekdoten has a thread in the Journals section, which might be helpful ...
Good trading ...
R
