WE have seen two selling back to the 1270 area with rebounds. The problem was the rebound, it simple could not hold about the Long BoT nor the aggressive short that developed Wednesday. (see prior post).
[07:42] with the continued stress on the lower level and a failure to exceed the upper BoT, it seems that the lower must be broken in another test to extract all sellers until a firm bull support can be detected. News continues, and it has not been positive. The FED inaction, while neutral in content, was not neutral for the market. Earnings will not pull this out until a firmer bottom support is found.
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If hope, EuroZone News. and US News pushed the market up, then no "new" news will act like negative news and push the market down, This is nothing new. Market will always seek a better price entry for bulls and bears. While 1370 was nice for two days, the bulls would need a lower support to garner interest. That support is around the seemingly magical 1350.
60 Minute Look:
B23-24 formed a MAXT, a PA exhaustion pattern that will often reverse, and in this case, the reversal continued to develop a bearish Control Bar. The best bulls could do? Test the 50CB level and sell again to a lower support that found bulls at 1352-54.
30 minute chart:
Similar, yet a better view for the MAXT that reversed two bars and broke Bot levels. Again, a 50CB test and FBO , with additional selling to support.
5 minute look:
Failure at the upper range and the Aggressive Short. By the US open the damage was done, and bulls could only test the 50CB level. All these point to the importance of a 24 hour look rather than Rth charting. Charts are 24 hour. Anything less simple does not tell the full story.
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