We have a potential long setup here, but it sucks
On Sunday night I warned you that after hours fuckery was in play and you should be cautious to the downside. Hope you heeded the warning. Yesterday we looked certain to fall off the plate and post a very bearish daily candle, but a masterful bit of intervention before the close pushed us straight off the lows. What we have now is a situation where the shorts are basically ALL IN, and the bulls are defending a last line in the sand. There is enough bullish evidence here that the odds favor the bulls mounting a last stand of sorts here. We have a potential bullish setup, triggered on break of the highs. The problem with this setup is that it is getting long into resistance. Personally I don’t think this one has the risk/reward basis for an intelligent trade, but if you insist on taking it perhaps monitoring market internals if it rises and trying to time an exit would be a respectable strategy. In any case you should be overly aggressive about banking profits.
This is a tough one to take. The weekly chart is uber bearish and you would be getting long into resistance. Still it does have squeeze potential.
The 1min chart shows the anatomy of the end of day bounce was not natural.