Posted 9:27 ET.
Yesterday we hit our upside targets in the big picture for S&P 500, NASDAQ, and DJ. This almost never happens simultaneously as it did. Although the overall trend is up this will help loosen up the market and eventually some side will puke or get really aggressive. This is part of the reason for the start of the day being very busy.
When the market opened the financials gapped down but were still in bullish territory. DJ opened weaked and DJT opened very, very weak. S&P 500 and NASDAQ slightly weak and the EURO neutral. VIX is up.
Brokers came in and bought it and opening range was the high of the day, briefly.
Until we reached the upside target yesterday, the market did a majority of the volume on the top. The market could not get below those areas and continued to rally and kept replacing the high volume bars (HVB) as it rallied, once again until our upside targets were hit. Today the market is putting in HVB and rotating around them.
The way the market is reacting around the HVB today signals a character change, at least initially. I like today’s volume and I expect someone to panic or get aggressive. We have not tested 1300 since we have been above it. That is as a good as any area to see what we do. We will see if the people who were aggressively bidding it up yesterday morning will puke them or believe they are still getting great prices. Or they may not even let it get to there as all the markets are coming back as I have been writing.
Once again I will be seeing how the market reacts around the HVB as the day builds.
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