The good news for bulls is that the market was able to close above its Point of Control for today. It also close above Friday's Point of Control.



When the NYSE $TICK hits + or - 1000 or more, it is not uncommon for the market to come back and retest that area. It is on that retest that I find a reversal trade is most probable of succeeding, unless the market is extremely strong in that particular direction. When you combine that market peculiarity with the other peculiarity of the market to sometime reverse going into or passing the energy market close, you get today's 10 point reversal after 1400 ET.

It is one of those situations where you keep your potential loss small hoping for a bigger gain. Today the reversal strategy worked.

Charles