May 07 2008
Today’s Trading Look-Back – May 7, 2008
Today was definitely and interesting trading day. It was a bit nervy at first, but then developed nicely eventually.
The market opened up at about 1420, which was where it closed yesterday. All fine and good. There were a couple of very important reference points nearby, though. Above the market the 1423 level goes back to January as a point of rejection on a couple of occassions. The market was unable to even get there Tuesday. Below the market the 1418 level was yesterday’s point of control. My view going into the day was either the market was going to break out through 1423 (and probably run to the mid-1430s) or it was going to reverse. In the latter case, the pace of yesterday’s advance made a quick return a decided possibility.
The key was 1418 in my mind. If the market dipped down and held there early on a rally through the 1423 level became very likely. If 1418 failed, though, watch out below! Things were choppy in that first 90 minutes, but the market eventually shifted into trend day lower mode (it was very obvious in E period when 1412 was broken) at which point I got on and just rode it down for a nice pick-up.
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