What is your Definition of “is” ?
Bill Clinton popularized the notion of defining “is” when he was under siege for hanky panky with Monica the harmonica.
If you see it as “what is the market going to do?”, score a few points.
If you see it as “what are the two letters that make this word meaningful to me as a trader”, score 10 points.
As a bonus, if you also see it as “what is the shortest distance between two points?” go to the head of the class.
The market was an equal opportunity employer today. It took out stops on both sides, swinging back and forth, with profits available in both directions.
When there is a large day down like yesterday, I find some of today’s range may have been “borrowed”, and the bias is for the bounce into retracement territory.
That’s a general rule, not a fixed absolute.
When the market assaults the short side, especially as we approach a gap, I am usually thinking this way: “Leave the party before the crowd does.”
I think the same way when the market is approaching the long side gap.
The machine loves to catch traders who overstay their welcome, and risk vs reward changes dramatically the first time we get near those magnets.
Double bottoms and double tops offer excellent opportunity to take low-risk trades with 1 to 2 point stops.
The bonus answer is formulated by “The Law of straight lines.” The more the market meanders and oscillates, the more times we need to get in and out of trades, and the more commissions are generated for the system.
I said call me E, but I guess you can also call me cynical.