Linda Raschke always says to play for reversal trades in the morning and to watch out for trend moves in the afternoon.
Boy, there are so many instances lately where she's sure been dead-on with this rule-of-thumb!
IF the market was going to liquidate down in the afternoon out of balance, today's structure sure printed some clues:
1) Morning range highs print below overnight range highs.
2) 1st major impluse up towards range highs, with strong TICK, falls short and prints a lower high.
3) Price breaks through VWAP to the downside and prints a double top pattern at VWAP.
4) From there the 11:00 (PT) sell programs kick in and the breakout from balance in confirmed with breakout in momentum (new low TICK and delta readings) along with above 45 day average volume.
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