Another Trend Following Friday

Summary

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Probably what enabled this trend day to occur was the fact that there were plenty of sellers to fuel short covering rallies when price broke above various resistance levels.

Notable characteristics of this trend:
- Previous two days were range bound days, ranging between 1456 and 1482.
- The time window of entry without suffering through any retracements in your position was in the first 15minutes of trading. After that, you would have to suffer through retracements of up to 7points if you were long.
- There were 2 low risk entries: the first was in the first 15min. of trading, and the 2nd opp. was just after 915a, when price broke above an ascending triangle pattern.
- The best part of the trend occurred after 1130a.
- There were no noticeable gaps to open the session. The market dropped 4pts in the first 10min of the session, then rallied 8pts to 1472. The break above this opening range confirmed the trend day.
- Trendlines were crossed, but the down moves were never sustained. At certain points (like the 7am reversal), sellers looked like they were going to gain control, but buyers came out of nowhere to perserve the trend.
- If you had bought the open, and sold at the close, you would have made 18pts.

There were two economic reports (Durable Goods @530a, Housing Sales @7a) which may or may not have played a role in today's trend day.