Whipsaws on wider timeframes make the market volatile from a swing perspective. Remember, crosscurrents mean that markets will reverse on its edges before resuming any trend. Trade war chatter continues and will likely be protracted but as @Hedgeeye yesterday said, trade war movement is DEFLATIONARY from all the past data. And that does make me think a bit more about the big picture and the charts’ inability to breakout further. Be cautious and allow charts to hold steady before engaging. Below 2844, sellers are still in charge. Support bounces are important to hold near 2800.5. The edges of weekly importance near 2807 and 2791.5 keep me on alert for the next weekly test zone of support, with a look at 2778 also now on the horizon.
RECAP -Sellers stronger below 2844.75. Buyers want to hold recapture 2836.5 as the weekly candle closes become important again. Breaches below 2800 is likely to create a bit of a battle with failure sending us into the lower level of 2778 noted above
Divergent action still sits below the movement of price on both sides of the trades – long and short – but traders are still looking at deep support edges to bounces.
****OUR METASTOCK MAP IS NOW SECURELY ENGAGED SHORT IN THE SWING MOTION BUT THE FORMS SUGGEST TAKING PROFIT AS IT TESTS LOWER AND ADDING BACK AT KEY AREAS OF RESISTANCE.
DEEP DIPS AND WIDE SPIKES IN PRICES ARE ALWAYS A STRONGER PROBABILITY WHEN THE SWING SIGNAL IS AT A CROSS CURRENT TO THE TREND. O
ALERT – last target of 2807 achieved yesterday. Big bounces into 2847 will re-engage the short
SWING SHORTS OPEN AT 2936.5, ADDITIONS NOW ARE AT 2836, 2844 , 2862 – RISK WIDENS HERE IN THIS PROVING GROUND ONCE MORE.
STOPS ARE VARIABLE BUT BUYERS ARE STRONGER ABOVE 2869 NOW.
PRICE CONGESTIONS NEAR 2856, 2840, 282 AND 2807 REMAIN SWING TARGETS
Divergence and defense of recent lows tell us buyers are still in the fight as sellers engage actively Here’s a link to the METASTOCK software
IF YOU DON’T JOURNAL YOUR PROGRESS, YOU SHOULD – How about finally starting that trading journal?
PROTECTED DATA SITS BELOW –
IF YOU CAN SEE THIS LINE, YOU ARE LOGGED IN
NOTICE: All user and member interaction and participation with TheTradingBook.com implies agreement with our Terms & Conditions