roguetrader
Senior member
- Messages
- 2,062
- Likes
- 49
Ruh Roh Shaggy
Well we came into the week with a relatively bullish chart picture and were given a demonstration of how rapidly the picture can change, in two heavy volume days the INDU lost 290 points. Volume surged on both days indicating that institutional selling was behind the move. If you were swinging and got caught long I hope at the very least you honoured your stops. I must say I find it somewhat odd, that coming into quarter end in a position to report a tidy profitable quarter that they would take the market down like this , but there you go, not really my concern. Nice week for the intraday crowd also.
Looking at the charts now the picture ranges from, not very pretty, to downright fugly, with INDU being the worst. The daily uptrend line (on a closing price basis) has been violated and the index has retraced more than 50% of the move up from the April lows.on the way it ploughed straight through the consolidation range of the past month or so, has smashed through the 200 and 50 day sma"s and taken out what I would have viewed fairly good support in the 380-390 area. Momentum needless to say is to the downside, initiative with the bears. Next potential support I see is at 10,250 ish, a swing high from mid April and 61.8% fib of the move up. and below that 10,140. On any upside bounce we should see resistance at the 380-390 level that didn't provide support, also the 50 day sma currently at 376
Indeeduser said:as the markets are an extremely harsh place......
Well we came into the week with a relatively bullish chart picture and were given a demonstration of how rapidly the picture can change, in two heavy volume days the INDU lost 290 points. Volume surged on both days indicating that institutional selling was behind the move. If you were swinging and got caught long I hope at the very least you honoured your stops. I must say I find it somewhat odd, that coming into quarter end in a position to report a tidy profitable quarter that they would take the market down like this , but there you go, not really my concern. Nice week for the intraday crowd also.
Looking at the charts now the picture ranges from, not very pretty, to downright fugly, with INDU being the worst. The daily uptrend line (on a closing price basis) has been violated and the index has retraced more than 50% of the move up from the April lows.on the way it ploughed straight through the consolidation range of the past month or so, has smashed through the 200 and 50 day sma"s and taken out what I would have viewed fairly good support in the 380-390 area. Momentum needless to say is to the downside, initiative with the bears. Next potential support I see is at 10,250 ish, a swing high from mid April and 61.8% fib of the move up. and below that 10,140. On any upside bounce we should see resistance at the 380-390 level that didn't provide support, also the 50 day sma currently at 376