THE week started with a gap open that eventually filled but stayed in a narrow channel for most of the Euro Zone trading. At the US Open, PA bulls and bears battled inside the BOT Range and had a narrow 2 point break out. RANGE BOUND anyone?
By bar 14 longs were back in play. By bars 15-21 we see a series of higher lows PA. This, combined with BOT range run, was enough for the bulls to hold. By bar 230 area we have part 2: the EMA Gap showing strength.
Higher PA+EMA Gap+ BOT Range Run/BO/reversal equals a bull trend.
The first expansion stalled around 1342.5 and a nice fade was shorted back to the long BOT. PA was supporting and new long were taken for the second expansion, albeit it was slightly weak compared to the high of the first expansion and shorting began to hit by bars 54-57. A HOD expansion failure for a reversal in the market.
Lower PA +EMA Gap+ BOT Range Run/BO/reversal equals a bear trend.
We like BOT plays and trends...
Considering the news, the market actually did well. Could most of the news now be factored in? Are the bulls ready to see an expansion? Is the Euro Zone without some players actually good?
There are some conditions in play to suggest bulls are stronger than most think. We have not seen a strong bear sell off. Controlled selling to lower levels yes, but not panic selling. Today was a win for the bulls.
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