NQ1!, Potential Bounce is Coming

On Friday the market continued to drift down and eventually found a short term floor. Several opportunities on short and long side were available. The current structure and positive divergences are increasing the odds of a bounce. One need to be on a lookout to play it. I believe that both short and long opportunities would be available. I'm not in a business to predict whether we see more downside or a reversal to previous highs. The market provides new information every minute and shows its hand. The current short term conditions are in favor of the upside. A return to Friday's low would be a warning sign. However, if the positive divergences stay intact it would make a potential breakdown less sustainable.

On Friday's the market formed an intraday balance and we need to watch its resolution.

Stay nimble and consider risk/reward.

08/04/2019