Afternoon folks! another solid week in the markets with the spx up about 2% and strenght all across the board on the indices. We are in need of a backtest very badly as the higher we get away from any level of support the bigger the grind becomes from finding prime setups as now all you see are extended stocks and more of continuation type setups. Regardless though we can only trade what we see everyday and take what the market gives us especially when the price action has been so positive every dip gets bought and any gap downs in the markets have been reversed which is very rare. This type of action never lasts forever and it just takes 1 day for that gap down to follow through and nail all the dip buyers and people who ignored there stops. When that day comes Im sure we will take a hit and lose some money in the morning but thats part of the game the key will be to recognize the situation and limit the damage and then flip the other way and try to make some money on the downside till we test some support.
Last week on Monday we did see a test of that 1300 level which we had been watching as our first level of support
Economic Data has come in better then expected and is continuing a slow grind higher in the trend of data
We had a couple tests of the uptrend line that we have been watching on the spx 30minute and had actually broken and then rallied right back above it negating the breakdown.
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