A Thief in the Night


The night watchman at the plunge protection team was obviously dozing last night when futures traders snuck in and engineered the dip we discussed yesterday:

The trend remains up, but I will look for any weakness to scalp a few points on the downside, with an objective of 1367 and stops at 1380… How we get there from here is anyone’s guess.  But, I mostly expect one last retrenchment before the final push to TL 2.  A logical place would be TL 1…

If you didn’t get short ahead of time, the likely downside of this push is the small channel bound at around 1364.  I don’t think it would be worth jumping in at this point.  Of course, if we break 1360, it’s a different story.

The channel bottom isn’t absolute, as there are a few different legitimate choices depending on whether one includes tails or not.

The picture is a little clearer on the daily chart.

If I’m not mistaken, that’s a very nice tag of TL 1 at  our objective of 1367 (well, 1366.64)  and probably marks the low for the day…less a few more easily rattled options buyers whom the market makers wanted to shake free of their winning positions.  Gotta love OPEX.

Now, onto the big questions:  Where do we go from here?  What happened to our price targets?  And, what happens after we get there?



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