\One thing that caught my attention around 1330 ET was that both the Financial Sector and Exxon were not as weak as the broader market. This sometimes indicates that the broader market has over reacted.
The 5 minute chart shows that at 1330 ET, the market was making a double bottom with increasing $TICK momentum.
Around 1500 ET, the opposite occurred with the market making a double top with decreasing $TICK momentum.
When the market is making a turn in direction, it sometimes will find support or resistance near the 50% correction point of the last 30 minutes as shown in the above 1 minute chart. The green, dotted line is simply a 1-period SMA of (Highest(30 minute High)+Lowest(30 minute Low) divided by 2 or the half way point of the last 30 minutes.
In the last 30 minutes of trading, the market again found support at its VWAP.
Charles
No comments:
Post a Comment