By: Scott Redler
I won’t say I’m a bull yet, but I would say if you were short you had to cover around 1040-1043 yesterday. During the course of a year, there are several important days that are important to take notice of. Yesterday was one of those days. If you aren’t stubbornthen you can avoid getting hurt and even take advantage. Failed patterns can be very painful, but also very rewarding if you are willing to take trades the other way.
Right now 1065-1070 held this market after a big move yesterday, which is normal. Now we need to at least hold half of yesterday’s move, it would be more convincing if we hold 2/3. If we can’t hold, then yesterday was nothing more than an oversold bounce.
If we hold 1048-1052, I would think this is would be constructive for the bulls. The market should not break below 1040-1044 if we want to see more upside movement. This level is 50% of the move and the old price point. Anything back below 1040 (especially a close below) and we are back to neutral and the market will really have everyone spun around.
Check out the link to today’s segment above. It’s pretty funny since you all know the Red Dog Reversal.
