Hey Market Pilots,
The markets had a pretty big move to the downside lately. I was prepared for it as far as knowing if the market was going to hold long or fall short. That line in the sand for me was the 15 min 50 SMA.
I was hopeful that Tuesday’s bounce would continue via support at the 15 min 50, but that was not in the cards today and if you look at the charts, you can see that the move to the down side really got going when price broke the 15 min 50 SMA.
The market found support by the end of the day Monday and began an energetic move to the upside. Tuesday, price pushed past the 15 min 50, but that MA was still angled down. The next move that I look for in order to support the uptrend is for price to hold the now uptrending 15 min 50. This would have proven that that MA was supported and price was willing to move up, along that MA. All bets are off when that MA can’t hold because after that, there is only air below.
Now I have to wonder if the 15 min 50 SMA will actually become resistance and start to guide price lower.
Over and Out,
Your Profit Pilot.