Unfavorable data (Initial Claims 496k vs. 460k consensus; Continuous Claims 4617k vs. 4570k consensus) set the stage for the early slide. But no follow through developed as buyers stepped in to defend the support zone.
Dollar weakness also contributed to strength in Gold and commodities. I'm expecting the greenback to continue to consolidate, gently moving towards its trendline.
The 15 minute chart of CLF above is a good example of buying the 2nd test of support. Point A was a long entry last week. Point B was the first test of support of the solid base which formed a point A. Today's opening breach of support (point C) triggered some shorts, but the snap back led to short covering which propelled the stock in a decisive move back up to PDH.
I like to fade the second test of support/resistance (turtle soup setup). The third test is usually the BO.