Theme:
Sharp decline through multiple support levels, but nullified. This makes me think that there is a big move higher that cancels out.
Overview:
I sense that we gap up over the weekend. In the pre-market we have sideways fluctuation with a bullish trend, and it precedes a decline. Right around the open, we have selling and profit taking from near overbought territory. There is a big move higher followed by a full retracement. There are three failed attempts to break through key resistance in the first half hour with a notable decline from the third failed attempt. We have sideways fluidity along support from roughly 10 am to 11am. That sideways rotation along support continues until just before midday. It looks like we have a prominent move higher, marking the end of a period of rotation in the following hour. That is a cash-in opportunity at the high there. From that, we break down through a diagonal trend line with increasing volatility on the way down. It looks like we have a trough or a pause in the decline around 1pm, and then we have a failed attempt to break through key resistance followed by a decline through support in the midst of a rally. I’m advised to open up some protection because down we go. We have a big move to the downside at the end of the day. There is low correlation to the end of the day, something having to do with a male ruler right around the close. We are out of a decline here and there is a fast move higher that breaks through resistance to meet a second and then it pulls back between the two.
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