Even as divergence holds in the charts across time frames, we still move higher as expected but without much of a fade downside. We could be ‘buying the rumor and selling the news’ here as undercurrents continue to signal that the markets are not likely to hold these bullish moves.
Intraday motion is likely to continue long until the catalyst gives us some news. The troubling divergence that continues across several time frames and through several days won’t make a difference as long as we hold higher lows and higher support. That said, once the levee breaks, we could see another sharp fade.
We are up on the higher edges of resistance but those edges could stretch even more this week into 2889 as the jobs numbers now loom ahead. We are still bullish on pullbacks so watch the ranges and even if the pullbacks look deep, we will simply look at weekly support and move from there. Be careful and PATIENT
Remember the overall trend is still long so we have to consider buyers holding the edges of deeper support. Above 2826 will keep us in this formation
UPDATE -Our Metastock Map for swing trades, TARGET RICH TRADES, is engaged SHORT but now a re-entry near 2841 is no longer on the table- the break above this area in overnight motion removes this entry…. we need to stand to the side as we expand before another contraction.
Completed is the trade below:
Short at 2831 with first target at 2814.75
Three targets have been acquired 2814.75, 2808.50, and 2794
Deeper supports sit near 2786, our initial downside target but it is likely that we retest resistance in the near term, having held the 2791 region. Here’s a link to the software
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