Following our principle of “Git’er done early” on a Friday summer morning, the charts said range day probable. We liked the long side trade for the open, then reverse at 72 for the Double bottom test (globex low), then saw the one tic lower low as a double bottom, and called the 63.75 as the pivot point re-established as the Angel support.
Battle’s are “fluid situations”. We never know when the market turns for sure until “hindsight” kicks in. We saw the 60.5 as support, so it seems the Boyz were willing to risk a few points (negligible to them) to advance the consolidation play.
When the 68 middle got busted, it was time for any sensible short to understand that scalps were all that remained as we were “above the line”.
74.75 was yesterday’s remaining resistance, and that held for awhile, but the 72 support never wavered, and the 78.75 target became available.
The 79 price was achieved late day as the pikers skinned the trapped shorts on a late day breakout to a new yearly high, albeit on very thin volume. We couldn’t foresee the breakout, but there was no sign of a breakdown this afternoon, so the edge went to the longs after the 69.5 war was won.
Never let a one tic lower low or higher high fool you. Expecting the double is how you protect yourself, and always allow a point or two for slop.
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