Reflections on the market
M C Escher was an artistic genius.
We usually need the same kind of instinct and artistry to interpret the market’s gyrations.
That comes from experience, and the school of hard knocks.
79 was called as support, with 77 stop this morning.
The expected play was for the half gap, then the gap.
When the 87 resistance got beat, it was all over for the short side. My call was for any high possible for the first hour.
Why? Because that’s how the market works.
Target then was for the 02 to 05 as resistance, and squeeze to any high possible.
“Risk/reward changes as we approach 810”.
“Any short MAY work, all are risky today”.
“You can try 810 to 812 resistance, target 02, 98. 97 support for closing.”
When Chicken little thought the market was going to crash late afternoon, I said: “Markets don’t usually make the same move twice in a row (law of alternation).” “The lunch low at 97.75 should hold today.”
That was the profit taking contra move, not the same as yesterday’s nervous twitch.
We are still in the 775 to 825 range as mentioned yesterday, look for this to get resolved one of these days.
The market made a mirror move of yesterday’s action, and this is normally bullish.