The market did finish above today's Point of Control, but below yesterday's. Still slightly bullish going into a couple of low volume days with the US market closed on Thursday.
The market was able to test the premarket high and then fade back to the Point of Control.
Yesterday was a wide range day, which meant that today was likely to be a more narrow ranged, balanced day. On these narrow range days, you may not see the usual $TICK divergences on test of strong support and resistance prices. An example is this afternoon's test of the overnight high. The market instantly faded from that price level, and went back to today's Point of Control with the $TICK reaching the +1000 level. It didn't retest that price, so there was no divergence.
The aggressive trade is to short that afternoon high as the $TICK went above +1000. The more conservative play is to short on the test of the pivot low located at the 0930 ET open price. No right or wrong strategy, just a personal decision.
Charles
Hi Charles
ReplyDeleteLearn everyday from your posts!
Happy Thanksgiving to you and yours
Tom
Thanks Tom, and Happy Thanksgiving to you also. I too am still learning each and every day.
ReplyDeleteCharles