Whipsaw was the theme of the trading day. The markets gapped lower on a combination of key earnings misses from MSFT and others, more banking woes, and weak economic data. Prices opened in the Fibonacci R-zone and slipped lower, but then buyers started stepping in. Prices chopped around the mid-range and finally ripped higher to close the gap. As soon as that was accomplished, they moved back into the mid range.Clearly we've broken the downtrending channel, but there's so much resistance overhead. Not sure what awaits us tomorrow, leaning towards more consolidation, notwithstanding any major negative headlines.
2 comments:
The afternoon felt like a repeat of yesterday but with more intensity. It set up just the same with a choppy C&H if you squinted. Looking at the last five candles on the daily charts, it doesn't look like they belong in sequence--seems very random. Chalk it up to earnings I guess.
Yeah, once price broke out of the base, it was a vertical gap fill. Didn't last much more than 30-40 minutes.
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