Tuesday”s drop could have been

Tuesday”s drop could have been a lot worse.

There was additional pullback potential down to 2091.25 under Monday”s 2099.50 low. But there was no requirement to test it. Having probed under it overnight, opening above it could have launched a durable intraday rally. But it didn”t hold, it wasn”t recovered, and the market left negative territory only intermittently.

A recovering must exploit that positioning by at least exiting Wednesday”s bias environment in rally mode, above Tuesday afternoon”s ~2101 high. A morning dip could still be recovered. Indeed, a morning dip would still likely be recovered. But not recovering a morning dip would target Tuesday”s opening range, and perhaps lower.

Avoiding a bigger decline required holding the pre-open 2079.25 low. It was. Reversing momentum up required opening above 2091.25. It was not. Closing above 2094.25 at least kept sellers from regaining traction, but closing above 2096 would have been more convincing.If it sounds like the market could trend either way here, that”s because it can. And the setup into Wednesday morning allows for trending sharply in both directions (not at the same time) and still return to unchanged.

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And here”s the chaRTroom links:
Win – XP friendly: http://anymeeting.com/192-252-933
non-xp ilinc-Mitel: https://roddavid10.mitel-nhwc.com/join/bfyyts