Quote:
Originally Posted by Vanity
EDIT: new trading ranges: 1244-1265
Above 1265, we hit new 1300 highs without stopping. This would signal a very large decline later on as markets rally past 10% gains on small volume. This is reflective of what happened in October and mid-November crashes. Good shorting position on the top.
Below 1244, we MUST hold 1235 or else we are sent back to retest new lows. It may be likely to see a reasonable 1-2% pullback in the markets after a 10% rally.
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We broke 1235 today. But just marginally. In fact, in the final 2 minutes it was sitting near 1230, only being pushed back up to 1234.35 in the
last second by 50M volume. Shows the markets wanted to regain 50dma support level moving into EU Summit talks tomorrow.
But a breach is a breach: trading range is 1220-1250 now. We may retest 1220, though breaking it this month is highly unlikely unless EU talks burn to the ground.
ECB not buying bonds today, did anyone really believe they would? 15 trading sessions remain in the year for wide-spread under-invested money to start pouring back into equities from Firms. Unless the EU talks tomorrow completely collapse and nothing is achieved, then today's 2% pullback is the resulting
normality of a near 10% gain in the markets we just had, as I called for on Monday. Ta-dah! 2% pullback seen today.
Trade accordingly.