Thanks China. Apparently, it's not good 'ol China isn't firing on all of it's polluted cylinders, thus the futures got whacked before the bell, negating even a test of the Scooby Snacks above. Or maybe after last years stellar advancement (make that 5 years of steady advancement) the old girl is just tired.
The China populace must not able to function all that well after smoking a pack and a half of ultra-high tar cigarettes and living in a place where you can't see the sun 350 days per year. It just can't be a cheery place work hard in.
The near perfect pattern-failure scenario unfolded and down to the bottom of the range price explored before traders got short in the hole.
The 1st hour and a half of the session was very interesting and a couple of metrics we follow indicated that this day was ripe for possible short in the hole.
1) Most notable, our beloved TICK indicator could not even muster a -600 reading as price ground slowly lower for the 1st 2.5 hours.
2) Time was a factor too, as price did way too much balancing during it's morning descent.
3) For a gap down of of almost 10 points to only have balanced sediment readings at -1000, (with no trend lower) was a flag too. Both sediment and the TICK were indicative of a some strong buying pressure underneath the hood in the NYSE.
Trade of the day was the 11:00 reversal a tick or two above S4. Mostly due to yesterday's very tight range, this is the 1st test of S4 that I recall in years. For this level to get taken out with spotty morning structure, was something to bet against.
And it's no coincidence that 11:00 printed yet another reversal move.
Lots of great stuff on the 5 minute.
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