Well, we saw what ‘fear’ can do, but when the ‘greed’ kicks in quite amazing reversals can occur…………..!? (doubtless aided by much short covering….!
)
I thought the selling was going to find a floor at around 9900 which was prior major resistance, but they have a habit of taking it to the next level down, and so they did today……..
The geometry seems to fit and with PD in many timeframes perhaps we’ll see some significant retracement of the recent falls…..(already at 10040!)
But I suspect that the lower high at 10560 ish and now a lower low at around 9860 might give a hint of the trend in the near term………
Pic 2 – bit of a weird consolidation around the 100ma crossing (‘X’ marks the spot!
) which looked kinda bearish to me but the triangle on RSI kept me in, though was tempted to abandon ship at 9932 when the consolidation target was met :-0 . Fortunately decided to take a tea break instead ((sometimes its definitely more profitable not to screenwatch – its all too easy to find a reason to close far too early (greed/fear etc!
) but I make sure that I’ve got a stoploss set to protect profits!))
ps - excuse all the confusing cr*p level lines on the 1 min chart - I'm in the habit of projecting lines across every time I see S/R (It does help at times though!)
pps - "We have oversold conditions," said Tim Heekin, head of stocktrading at Thomas Weisel Partners. "We got to down to 1,075 on the S&P 500 and people just came in and started buying. It was purely a technical bounce." (wow....!!!!!! :cheesy: )