Mar 19 2008
Today’s Trading Look-Back – March 19, 2008
Today actually ended up being pretty straightforward and easy, at least until the end of the session.
Trading started off in the upper 1330s as the chart below indicates. The nearby reference points were 1340/41, a combination of a point of control and level above which prices were rejected back on March 5th. Down at 1324 was the topping area from March 13th.
As you can see from A period, the market traded up through 1341, which presented a great sell opportunity. It then failed quickly, but didn’t immediately run lower. It spent a bit of time consolidating through E period, then finally gave way in F & G. From there the market fell steadily, going through 1324 level without a blink. You could tell that was likely in the way E/F/G was doing lower highs and lows. Had there been a bit more back and forth and less outright weakness, it might have been different.
Then came the break of 1318, which was significant in that it put the market into Tuesday’s value zone – a flat one it was likely to run all the way through down to near 1300. The hard part was sticking with that move as there was a big bounce in L period. An ideal play would have been to sell the return back into the area below 1318 once more.
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