A big down day , but does not resolve the current range | stockbee

6/02/2011

A big down day , but does not resolve the current range


A big down day , but does not resolve the current range. So back to range bound action.


One day at a time approach is best in this market. Don't hang your hat on bullish or bearish scenario unless you see decisive breakout in either direction. 


I was very skeptical of that follow through day. FTD that happen after a market correction of 8 to 10% plus are important. Here a FTD was happening near recent high plus it was happening after 3 days of weak buying. Typically at real turns there is breadth flip where breadth suddenly flips from highly negative to positive. The recent setup was not like that.


Periods like these thin the ranks of traders and many people give up on market and then the market makes a big move. 

1 comment:

TonyFernandez said...

I don't know. That's a few months now of plateauing. I'd say it's at least reached it's height, if not beginning to trend downward.