It’s been a pretty event filled and exhausting week for me which I’m more than ready to kick up my feet and call it casual Friday. But not so fast – equities once again are on the rebound after yet another shake out dip lower, and that opens up a potential entry opportunity. Yes, I know you’re ready to call it a week yourself but let’s at least take a peek, shall we?
The Zero actually signaled pretty bearish yesterday but then it painted a super juicy bullish divergence followed by a late session ramp higher (click on this link if you want to know how to trade those). Overnight we corrected a little lower but since I like the formation here I’m prepared to throw a few basis points at a Friday lottery ticket:
And there you have it. Long here with a stop below yesterday’s spike low. If you take a look at the daily panel (on the right) then you’ll note that the dip lower actually touched the 25-day SMA. Doesn’t mean a bounce is baked in of course but at least it’s got decent odds.
Caveat: It’s very late in this rally and if we bounce here then we better be nimble. I may even close out before the bell if we don’t see movement (to the upside!) after about mid day. In case you’re wondering – yes, it’s permissible to be short here and that may actually turn out to be the proper direction. It’s just not a deal I can take right now as the daily trend has not yet been broken.