A quick update about the importance of the 50 percent retracement. Its simple, easy to remember and it works on long term moves as well as intra-day moves. It is a magnet, and serves as a fulcrum, or the balance in-between the see saw of the market.
Overnight, we had a high in SF at 1034 and a low at 1016. We opened at the half way mark at 1024, tested in twice, and it served as the jumping off point for a nice ten cent move higher. Conversely, if it hadn’t held, it would have been a good spot to flip short, if we had broken more than 2 cents below it
The other item I like to watch are round number moves. 50, 100, 150, 200 point moves in the Dow. Those round number gyrations serve as good entry and exit points for trades.
I will be doing an afternoon update, but please feel free to leave a comment or question.
Good Trading
