Today had a nice rhythm. The longer time frame was participating but the short/intermediate term position traders were controlling the pace. In the final hour an onslaught of buy programs, the cavalry, brought home 100 NASDAQS. The quarter featured nearly a 14% peak-to-trough move and ultimately finished down 7.35%. But the last 12 months are basically flat. Let’s assess the journey, shall we?
Using charts to build context is similar to driving across the country using old school maps. The national map shows the major interstate and you may check this when you cross a state line. The weekly composite chart is the national map, see below:
We view state maps to see a bit more detail. If the below chart were a state map it would be Ohio–where nothing happens. The daily bar chart is our state map:
Inside a city we want even more detailed maps to show alleyways, one-way streets, etc. And if we went to the fruit market we would go even closer. These are the charts I post in the morning.
Anyhow, look at where the daily chart is trading—more or less right where we were last year, which also lines up with the old “14-year” gap. This area was resistance for a long time, then support for a little while, then abandoned, then returned to at high speed by maniac robots, and now being retested. Price has memory and this level is demonstrating it.
Let’s keep in eye on which side we reside mid-month and again at Halloween.
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