The Way It Works

spx_weekly

Big downside move on the major indexes. But lack of volume is like less thrust available for follow through.

Nevertheless, we anticipate the the S&P 500 will sell-off to its 200-day moving average.

That would also fill the gap (air pocket in price action made from a higher open on the chart) made two weeks ago.

We mentioned several posts ago that it was just a matter of time until it gets filled.

To a novice the concept sounds bizarre, and we won’t argue. But the reality is that’s the way it often works.

Successful trading is about lining up winning odds in your favor.

Advertisements

No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: