News today is mixed in general as market participants try the monthly support bounces.
Tech continues to be weak but is also trading at support.
Market conditions suggest countertrend bounces into resistance. Remember we are in a bearish trend and if a lot of traders have piled in. So if the S&P 500 and broader stock market begins to bounce sharply, we will squeeze and that could catch us unaware for a quick burst higher.
DO NOT ANTICIPATE DECISIONS OF MARKET PARTICIPANTS
This is our great strength as traders (and not being money managers or hedge funds). We can watch the action and follow “price”.
We do not need to front run the moves.
If you do, you’ll trade in front of a move and could get smashed (emotionally and otherwise) – and that will render you less effective as a trader in the longer term.
The backdrop of global slowdown still prevails.
RECAP: S&P 500 futures (ES_F) buyers are now stronger above 2766.75 but face resistance up to 2775.
Sellers want to move us below 2746 but have been weaker than buyers in this bounce move.
Lower highs and lower lows confirm to me that the overall pressure still looks negative but slipping neutral in the shorter duration as the counter trend bounce tries to hold a footing.
Twitter: @AnneMarieTrades
The author trades stock market futures every day and may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
