Thursday's (August 11, 2016) US markets was clearly "algorithmically" driven. I think that scalpers and day trader could see how the prices moved *again* in some "strange" fashion. And out of the blue, the US markets were on cloud nine and made a triple all time records that day, altogether (see 1999 and what ensued). The CAC40 and other indices followed suit.
Which means that the 4450 level was certainly pierced thanks to lower (I don't even need to check any indicator, but my guess could be wrong: are you people confirming or infirming it?) and more importantly, to super mega algorithmic trading.
Yes, you probably got my point: The extra 50 points above 4450 was according to me noise inside the noise. Hence the erratic moves and consolidation from Friday. Which means that this mini breakout was probably fake. I would have a short bias/opinion during the first on two days of next week (August 15-21, 2016), until we get to 4445-4460. I would personally go long only after we get at least there, or if we clearly break through 4510-4530 for a couple of days if this scenario doesn't work. But there could be some tricky moves slightly above 4500 this coming Monday before we go back to 4445-4460. Pay attention to that.
The risk reward is higher by doing swing trading and shorting. I would short with my eyes *closed* at 4600. 4666 ( ) could be some "noise target", but long positions would ultimately fail, hence a stop-loss at 4700. Of course, I do not possess a crystal ball, but there is rationality in apparent irrationality, and the game is about to decipher those moves without becoming slaughtered by the big guns and "smart traders". Go catch those high-probability trades. We are soon getting there.
Notice: There's a gap at 4360 (CAC40) and a small gap at 18610 and around 18500 for the DowJones. Tricky isn't it? Which infers to me that shorting provides a higher risk-reward ratio.
I will try to post my daily results. I am willing to share comments and my experience with everyone.
Feel free to check my post #183 on my blog -> http://lucky-index-trading.blogspot.fr/2016/08/183-starting-crazy-challenge-new-track.html