We made an attempt at testing previous highs, only to be sold. The good thing is, however, that we're building value at these higher levels, so that we can break out to the upside with conviction/follow-through; when/if this happens is another matter. I can see a test down from here to see if we can put in a higher swing low:
This morning's gap-down was quickly bought, and
the strategy I mentioned a while back for buying a return to the previous close was in play for a scalp. I've been forgetting to mention this technique, but that's not to say I have scrapped the setup.
These aren't hard and fast rules of course, like waiting for price to get to the
exact PDC price. It depends entirely on the way things are moving, if there's a better opportunity to get in while suspecting a play off of this scalping technique than that's what you base your entry on, take this morning for instance; On the 1-min chart the nr7 bar (purple doji) at the end of the tight consolidation flag was a much better risk/reward entry, suspecting a quick move to (and off of) the PDC. As price flagged again at the $95.75 range you can see TICK getting weaker and the lowest close of that range was followed by a sell-off.
Something else I wanted to mention was incorporating Buy/Sell Envelopes on some of my charts (select issues I watch with frequency). They're very similar to pivot points, and they're adapted from the
Taylor Trading Technique.
This day's Support on the SPY was $94.83; not bad, our LOD was $0.06 higher. Meanwhile, the Resistance for today was $96.13, the exact penny for our HOD. Here's the 5-min SPY, with the Buy & Sell envelope are highlighted in the bright blue horizontal lines (the other three horizontals represent Pivot, R1, & S1).
On the chart above, notice the
"Slingshot" setup. Price put in a higher low, while the momentum indicator put in a lower low, giving you a buying opportunity that has three criteria; Pivot Support, a Slingshot setup, and a bullish engulfing candle closing right on top of the 20-EMA.
Finally, there was FCX this morning. Price based around the PDC for most of the morning. Towards the break of the base we had 4 narrow range candles, 3 of which were nr7's. I'm keeping a spreadsheet for FCX as well, using this Taylor Trading Technique I mentioned above. The Buy/Sell Envelope for today on FCX are highlighted on the chart below with green and red horizontal lines. Price came withing $0.03 of our resistance level! If there's any desire to know these Buy/Sell Envelope levels, let me know. For now, I'm keeping track of SPY, RIMM, FCX, POT, and XLE.
Watch the dollar for signs of weakness (in equities, strength in the Dollar).
Zoom in a bit on that chart and look at the day the U.S.Dollar Index had yesterday:
That's an 8-cent daily range! Talk about range contraction! Keep an eye on this one, it should get interesting.
This morning's gap-down was quickly bought, and the strategy I mentioned a while back for buying a return to the previous close was in play for a scalp. I've been forgetting to mention this technique, but that's not to say I have scrapped the setup.
Something else I wanted to mention was incorporating Buy/Sell Envelopes on some of my charts (select issues I watch with frequency). They're very similar to pivot points, and they're adapted from the Taylor Trading Technique.
On the chart above, notice the "Slingshot" setup. Price put in a higher low, while the momentum indicator put in a lower low, giving you a buying opportunity that has three criteria; Pivot Support, a Slingshot setup, and a bullish engulfing candle closing right on top of the 20-EMA.
Market Profile shows us a tight range "fat body" similar to an nr7 candle. I'm going to have to do a more in depth post on the market profile at a later time. If you're too anxious to wait, go get your hands on the book Makets in Profile by James Dalton.
It looked like it could run quickly but coiled into a triangle, ending in an NR7. A break of this triangle coincided with a "First Cross" entry (green dot in sub-plot).
Bulls are holding on to profits. I don't really have anything more to say at the moment.
The 15-min range tried mighty hard to stay above our intact regression channel that's been in place for this whole counter-trend move. We got 4 tags of the 20-EMA throughout the day, while towards the end of the day price rallied to tag the 50-EMA twice before failing. Very choppy and confusing for me.
The shorter time frame; In the early morning we had a Double "W" bottom pattern (strategy is to buy the breach of the W's apex). Price stopped at a confluence of S2 and the 50-EMA (on this 5-min chart). 
The range between 11am and 1pm was sloppy. Price held support twice in an area that corresponded with the "W" apex. The third test broke and led back down below S2. We got another "W"-bottom that failed to breach the apex, though price held the lows of the day. I'm left trying to figure out how I would explain the end of the day volatility.
The second long (2nd green vertical line) came after an NR7 (pink doji candle before the green line). While the last trigger was given right before the end of the day, so you could possibly have attempted a scalp, but those last 15-minutes of the day can be tricky and untrustworthy.
I mentioned yesterday the potential for a "Slingshot" setup in today's tape based on the 60-min chart. We did get a snap back move back up to previous resistance and worked really well. Could be approaching the neckline of a Head and Shoulders pattern.
The Daily shows a close below the 50-EMA, hard as it may have tried. Leaving us a partial gap fill and doji star type candle that makes me suspect a retest of the trend line directly below.
QLD set up a tweezer reversal/bottom on it's 15-minute chart. This coincided with trend line and Moving Average support, target being the previous swing high.
FWLT failed the $51 price point and gapped down today. Price consolidated into a symmetrical triangle before triggering a short.
the 15-minute. A high momentum morning gap up starts the short covering, aka GMTFO (get me the F out). Price rests right on a resistance trend line, but only until the next session, eventually retracing 62% in 4 days. Remember the $21.40 price level as future support, if we see it again. 
