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The knee-jerk reaction to China”s – If, Then… Market Timing

The knee-jerk reaction to China”s

By Rod David | August 25, 2015 - 9:27 am

The knee-jerk reaction to China”s rate cut hasn”t extended above 1948.50, but neither has it been rejected. Its reaction down has essentially defined the lower-end of a range back to 1930. Extending through 1947 and remaining above it at 9:45 would trigger a session-long rally that traps yesterday afternoon”s sellers, regardless of yesterday afternoon”s sellers having gained traction.

Gapping up open beyond the prior afternoon”s extreme is the only way to invalidate sponsorship that gained traction. Since yesterday”s close trended down, there would be an added expectation for trending up through the day. Similarly, since the session-long rally is being attempted, NOT ultimately triggering it at 9:45 would be as bearish as it could have been bearish.

Details and other markets coverage are in this morning”s pre-market Tour, recorded here:
https://roddavid10.mitel-nhwc.com/join/fbkpbtz

Posted in S&P