This is the first post since October. November has been a personal trying month, and the markets have been fantastic. Both causing the need for time to reflect, repair. and look forward.
Friday 11/16
Overnight trading had settled in a range. Earlier we (assumes chat crowd followed) took shorts in the 49 zone. As the Euro zone developed. PA would test highs around 52 and back to 45 lows. By early morning US we were at highs again and saw a reversal run the range to establish new lows. We eventually got the discussed daily 50CB around 1340. This was a support level on the daily chart.
Buys there led to a range run back to the BO 5 level from the pre-open. A 50% retrace back to the triple bar 50CB area created a HL which again offered a nice return for bull longs.
A small wedge, followed by a larger wedge,
DAILY
We still have a gap from current PA to the last 50CB bearish TL. The TL is roughly a 45 degree TL (bull or bear) from the 50CB point.
This has bulls struggling against heavy resistance at the prior august 3rd 50CB, and the more recent one of November 7th.. Upper resistance is at 1365, 1370, and the TL 1375.
Given the current economic and political climate, the market is likely to reverse the Friday positives to put in a double bottom test of the 1340. Whether up or down, we are in a zone that likely will see continued testing- lateral PA in a narrow range- before it can break out.
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