The Good
After intense selling on Wed, we had intense buying on Thu in expanding volume.
This suggests that the 2640 support has efficiently played its role.
Good probability of a continuation, subject to payroll numbers.
The Bad
The market remains fragile due to harm done in October.
A breach below 2640 is unlikely for now in my opinion.
Such breach would reverse current positive stance.
The Strategy
TARGET 1: 2760
TRAGET 2: 2812
SUPPORT: 2640
Remain prudent due to current market fragility.
Buy high Beta names to play the technical rebound.
Liquidate and move to cash upon breach/close below 2640.
After intense selling on Wed, we had intense buying on Thu in expanding volume.
This suggests that the 2640 support has efficiently played its role.
Good probability of a continuation, subject to payroll numbers.
The Bad
The market remains fragile due to harm done in October.
A breach below 2640 is unlikely for now in my opinion.
Such breach would reverse current positive stance.
The Strategy
TARGET 1: 2760
TRAGET 2: 2812
SUPPORT: 2640
Remain prudent due to current market fragility.
Buy high Beta names to play the technical rebound.
Liquidate and move to cash upon breach/close below 2640.
Comment:
Stop at 2640 has been reached, with the market closing below it two days in a row. However, yesterday's strong close and bullish hammer suggest there could be a rebound/reversal from here. Market remains weak.
Trade closed: stop reached
