Here is a five minute bar chart of today's e-mini action. I covered my short position on the bar indicated by the pair of red arrows. During that bar the market broke above the 759 level I thought was resistance on high volume (red dashed line). Since I am still bullish looking ahead more than a couple of days, I chose to interpret this bar as a high volume breakout instead of a climax bar.This means that I must revise by range estimate. I now think we have seen the day's low and that the market will make today's high near 771, with a reasonable chance of reaching 775. If this is correct then any reaction should amount to no more than 6-8 points (purple dotted rectangle) and should hold midpoint support (purple dotted line).
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ReplyDeleteWow. Trend reversal. I wish I had followed my gut and covered my short first thing this morning but the greed of 735 got the better of me. Live and learn to always take profit. Still, thanks for the update Carl.
ReplyDeleteif you followed your gut--you would be in the gutter. follow your brain
ReplyDeleteGreat discipline when no insight
ReplyDeleteAnonymous at 2:17..I would be the gutter when I'm taking profits? What is wrong with that? I should have taken my profits when I had them. That is not a slight at Carl it is just doing what Carl usually does... be cautious.
ReplyDelete