We have just seen a high volume reversal off of the day's high. The question now is just how big the reaction will be. At the moment I think it reasonable to suppose that today's range will turn out to be a little bigger than yesterday's 17 point range because we have so far seen substantially more volume than yesterday. I am guessing a 20-25 point range for today. If I'm right then the day's low will be somewhere in the 918-23 range. So I plan to be a buyer later today if the selling dries up near these anticipated lows.
If we should see high volume selling come into the market below the 915 level I would then expect a reaction of a couple more days which would carry down to 875 or so.
1 comment:
so why would you not go short then?
Rick B.
Post a Comment