The broader markets and many stocks gapped lower at today's open and it looked like -- at least a short-term -- that a high point could occur, and maybe it has. The Russell 2000 that has been relatively strong was the weakest today among the broader market indices.
The weekly charts of the majority of markets and sectors are extended higher and the market internal gauges are as well.
However, buyers bought the gap lower again and held their ground.
the change was that those buyer could hold the markets are their highs by the day's end has they have recently.
Power may be changing hands and we think that this week might the first one on nine weeks to show a loss.
Let's review the charts.
Master Trader Technical Strategy Concepts are Universal
It doesn't matter what the tradable instrument is (stocks, commodities or currencies) or the time frame being used, all technical concepts are universal to all.
The time frames used do change, and that is a choice. There isn't a wrong or combination of them.
For Swing Trading, I use weekly and daily charts.
For Gap and Day Trading, my choice is the 5-Min. time frame.
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Managing Director of Master Trader
Trading the Pristine Method — Origin and End
Chief Options Strategist