Thursday, August 26, 2010

My thinking

Looks like we are trading in a range lately. It seems uncertainty does indeed have a range... and 1130 to 1040 looks to be it.

If we go back to July 7 - a day in which the buying was extremely aggressive and a day in which we broke the downtrend of the prior couple of weeks - 1036 is very strong intraday support. I also see 1052 as intraday support too. Just not as strong. Also, 1052 was a good support level for the weeks following - see highlights - and it was the 50% retracement from 1002 to the 1128 high. So, there are a couple of reasons that put the probability in your favour for a long there. I was confident for a long there but took half out on a 5 point breakdown.

1 comment:

  1. Thanks for the post, Jeff. Appreciate it. I've been leaning long given that we've been able to rally our way back to come close at or above 1050 up until yesterday. A close below 1050 was my stop to wait and see for another long signal. Thanks again for the post.