Still grinding higher. Stops under 7430 have not been hit,
with a low since at 7434.
Now it's entered the area around the highs it's meeting that
profit taking we were looking for from 7500 through to the
highs at 7590, but absorbing all sales very well, so far...
It's tracking within a new impulse wave from the break-out
around 7pm est when markets in the far East opened - (that
was Chinese buying that followed the break back above the
upper parallel last night)
Whilst it tracks the parallel it's still very strong...when it
breaks below the lower parallel it will turn weaker and then if
it breaks below 7450 and breaks stops below 7430 it will start
to unravel for a while, back to the next listed support at 7346.
So day traders can stay long whilst within parallels and then
short on exit from lower parallel on retest and rejection.
Swing traders sit tight still awaiting a break above 7600 (with
stop 60 points lower)
This green candle is stunning in its power. Just stay with it is all. This thing can go to 15000.
STOPS The bane of trading life: With a low at 7322 some 'stops below 7330' may have been taken, which is very annoying if you got taken out here. Also difficult with spreads as well to know exact spot to place the stop. But with something as volatile and with such a large number (7000+) to contend with around 15 points below or above a key level is about right. Even then, it might have still taken the position out, depending on volatility and spread at that moment...It's a crying shame, meaning only 290 points won from the breakout last night...but then you're up another 250 in the last 10 minutes! Stick with it now. Been chasing this around all over for 5 days solid. Finally this thing is bagged, tagged and in the freezer...with the lid slammed shut. The leviathan. Now for a Nantucket sleigh ride. Enjoy!