Down Day, But No Follow Through

The liquidity-sucking 20 day was tagged today 1st hour, and R2 was tagged to the tick, with an immediate reversal (Much like last Thursday's R2 Reversal action.) And like last Thursday, the plan of attack after mechanical references turning price so perfectly 1st hour, was to buy pullbacks and stay long while the price action remained positive. And of course, not to expect new lows.

The crew here (there are many of us swimming around with each other, mind you) gleamed price action showing it's negative hand at 11:00, with emerging markets in a firm trend down, the VIX screaming higher, and TICK featuring a momentum diverge at range highs. These clues were enough to get us short and ride the recently reoccurring pattern of up moves getting swatted by longer time frame participants.

But, alas, the buyers came in after a bit of selling  (and we expected them to, as the lows were such high odds to be in for the day) and the market closed near highs.  Typical balance Friday type of day.

Although today was a down day, the balanced nature of it gives the buyers excellent chance for upside Monday potential.