The bulls tried to push the market higher on low volume and got the flattened at the end of the day when the sellers arrived. So far the move as everything I wanted to see:
- impulsive structure
- ending in the key resistance zone
- volume to the downside
I would actually be surprised tomorrow if we don't have an acceleration gap to the downside doesn't get filled. If this is truly an impulsive move, the market should be taking out the wave A lows by Thursday and pushing hard by Friday. My target for this first wave completion is the 790-830 zone. I know its a wide zone, so I'll start taking profits at 830. If we get some nice divergence and weakness near 790, then I'll actually go long for a short bounce. I don't expect it to be more than that.
I only added about 1/4th of my position in the morning and was adding heavily near the highs. I got to about 75-80% of my position, as things weren't clear until after the fact. If we get a gap down tomorrow, then I'll add on any bounce. If we go straight down, then I'll be happy with where I'm at.
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Thanks Rich.
ReplyDeleteGood luck with your trades. It sounds like you have a good plan for taking profits along the way.
ReplyDeleteSorry Rich, it's just not going to happen
ReplyDeletehey saleen - well it looked good when I went to bed ;-). Today's action though isn't as strong as I thought it would be. I'll be watching where we close. Certainly the 943 area is still a possibility.
ReplyDelete