Today's close at yesterday's upside 480 target helped to prop the price back over the green uptrend line again. This also kept the "higher low" intact. Today's close at 482.85 also guarantees a higher high (only by 1 point), but it is a higher high technically.
Tomorrow will be key to see if there is follow through. This may be the excuse they needed to go on a Santa Rally buying spree.
There is overhead resistance at 550 and 580. For the time being I expect the price to chop between the upward trend line and 550. A close below the trendline again will force me to reassess.
Tomorrows Uber Upside target: 512
Needs to hold (close above) at least 466 to keep bullish short term tone.
Be prepared for anything tomorrow. In many cases a bullish reaction to the Fed has crumbled to new lows just a few days after. There is no evidence of this yet, so we trade in the direction that the chart shows us, but we are prepared to switch direction at a moments notice if that's what the chart tells us.
I am still trading intraday only and am not ready to take any swing trades "Long" at this time. It's likely that I will use my patience and wait for the price to reach a strong resistance area like 550 or 580. At those points I would look for a reversal signal to enter some "Short" swing positions. I fell more comfortable trading in the direction of the intermediate trend in this type of volatility.
RUT Daily Chart:
Posts
No comments:
Post a Comment