The short and intermediate trend is down - we have 1-timeframed lower for 4 straight sessions. Price today entered the lower balance area shown above in the Daily Bar chart (includes Globex session) and found acceptance. The destination trade becomes the balance area low of 1414.50 to 1418. The reason I am picking a larger band is because 1418.75 was the regular pit session low for the lower balance area. I had mentioned in yesterday's post that the liquidation break was very thin and halting and did not really represent new money selling - very thin markets are often retraced.
After the initial liquidation this morning - Wednesday delivered a balanced rotational day with the market retracing most of the ground by mid-day. While Value was clearly lower - the POC did not migrate lower with Price - which implies that there may be a lot of shorts piling on and lowers the odds of further downside continuation. We have a fairly prominent POC that has good odds of being revisited. What was considered support earlier 1433.25 now becomes resistance. On the downside I would look for a initial support around the 1418-19 area.
No comments:
Post a Comment