Thursday’s Results: Buying 4181.50 only offered a quick 6.75-point bounce.
Quick Tip: Parabolic Moves
Trending price moves in impulses and corrections in both directions. Three steps forward, one back. The trend continues until price moves sideways in a range. Eventually a new trend starts. Look at plenty of charts and notice this repetitive pattern.
Sometimes the trend portion of the pattern doesn’t move in impulses and corrections. It’s a smooth series of vertical candles Like Wednesday afternoon. This is a fabulous “tell” that price may move in the opposite direction just as fast. We don’t know when. This week it was the very next day! Other times you’ll find a range form before the reverse move.
Get in the habit of marking these parabolic moves on your charts. It will prepare you for a potentially sizable winner when the reversal occurs, or the new range breaks out.
Today’s Best S&P Turning Points –
Sell 4292.50 stop 4297.50
Buy 4002.00 stop 3998.25
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