Tuesday, August 28, 2007

Another Turnaround Tuesday


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Characteristics of today's trend:

- The biggest pullback was about 5.5pts, making this trend very catch-able.
- Previous day was a gap down reversal of Friday's attempted breakout, resulting in a IDNR7 day yesterday.
- There were 2 low risk entries: the first was in the first 30min. of trading, and the 2nd opp. was just after 11a, when price put in a double top after spending 2 hours in a 4pt range bound consolidation. The double top at 11a was especially interesting as the market was actually attempting to reverse the morning's drop, but failed decisively as volume spiked up on the break below 1453.
- The best part of the trend occurred after 11a.
- The market dropped 13pts in the first 2 hours, then spent the next 2 hrs retracing 38.2% of that drop, double topped and dropped for the rest of the session.
- Trendlines were broken only during the midday 4pt consolidation.

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