An exhausted move right off the opening into resistance was met by aggressive sellers. The resistance was a confluence of a double top pattern and 20 day moving average. One can see how news are conveniently timed with the market structure. Whether this is a coincidence or not I would leave it to conspiracy theorists. In my case I put a limit order ahead at 7840 and simply played the odds of a potential reaction. A strong sell signal, triggered by the news, put the trend following Algos into reversal. The rest of the day they were selling the rips. This is the beauty of trading with the machines.
The market closed at support with a positive divergence. We may see bottom pickers active in the overnight session. Could be a potential bounce back. Watch 7740 level which is a primary resistance for now. Its break would open the door for a retest of 7780-7800 levels.
10/1/2019
The market closed at support with a positive divergence. We may see bottom pickers active in the overnight session. Could be a potential bounce back. Watch 7740 level which is a primary resistance for now. Its break would open the door for a retest of 7780-7800 levels.
10/1/2019