Well, the market is still down. The indices are painting red with no worry. What can ths mean to us daytraders? In the past, my posts have been focused on going long and on indices showing long term buying signals. In these posts, what’s not reflected is that despite the long term indicator signals the potential to daytrade is still present.
So today was a 600 pointer red day! Well after a number of green days, this is a first red day. Probably the market will pull up in the morning. At this point it would be good to enter some short term short trades. Buy puts, short shares, buy reverse ETFs, etc. Having said all of that, let’s see what the DOW charts show.
The Fibonacci retracement shows that the DOW retraced to .618 level, then just powered thru all resistance to the down direction. It will probably go up to .382 or .50 level then go down. Seems the 0.00 level might be easy. It’s a previous known low in recent days. There’s a little resistance at today’s close.
Actually, that is almost 700 pts!