Contrary to my expectation the e-minis have just dropped below today's earlier low. But this situation is of great interest from a tape reading standpoint. We have just seen a high volume break back to the low of the 825-37 trading range. The high volume is relative to normal volume at this time of day. If support at 823 is going to hold the market will absorb this aggressive selling we have just seen. Indeed, it ability to do so would be very strong evidence that the swing down from 876 is over. I think this test will be successful and that the market will rally from here.
Friday, January 30, 2009
Testing Support
Contrary to my expectation the e-minis have just dropped below today's earlier low. But this situation is of great interest from a tape reading standpoint. We have just seen a high volume break back to the low of the 825-37 trading range. The high volume is relative to normal volume at this time of day. If support at 823 is going to hold the market will absorb this aggressive selling we have just seen. Indeed, it ability to do so would be very strong evidence that the swing down from 876 is over. I think this test will be successful and that the market will rally from here.
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7 comments:
thank you Carl. I am fascinated with your work.
These intra-day charts + analysis are amazing, it certainly has put a lot of your naysayers to rest (though a few seem to squirrel in from time to time). I a sea of financial blogs by out of work software developers with little or no value, yours and a handful of others are truly the cream of the crop.
carl have you stepped asside the last couple days from making any trades.
i have not seen any posted
i really enjoy your blog!
anonymous, I find it extraordinary that Carl hasn't made trades. He was waiting for confirmation of his view and showed great restraint and patience. That's one of the very best edges, IMO.
Hey Carl, I appreciate your work. I have a question. What did you make of the market preceeding lower around the 3:30 hour. Was that just a break below and then a rebound or was it increased selling pressure followed by a bounce up? What do you feel is going to happen in the coming week? We head lower due to bad news or we bounce up due to being oversold and the possibly that a different plan will come along from the president?
I have not seen any trades recently. Do you find these market conditions less favorablable?
thanks,
Your fans miss your insights. We hope all is well.
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