Good Morning.
At the risk of sounding like a broken record, the hourly trend continues … continues … continues (whack) to dominate and provide strong trade guidance as its downtrend support has once again turned back an early contra-trend rally. The early pace has been choppy given the ping-pong action between an early 13-minute uptrend and the hourly stranglehold and as many traders sit on the sidelines ahead of afternoon FOMC news and tonight’s speech by the President.
While a break of the 13-minute support may trigger a further leg down on the hourly, such trades should consider the reward/risk ratios on the short side which will likely continue to shrink given the longer term oversold status and climbing fear factors. As such, trade potential should be carefully considered and tight trails implemented should the ultimate bungee bear bounce occur while in such a trade.
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