Wednesday, August 31, 2011

Resistance is Futile

Resistance against the first touch of resistance in an extended move up is usually futile, especially if you have a short time-frame.   A bit of a pushed title but always wanted to fit something in from the Borg.   Anyway, we hit and faded from major resistance today on multiple sectors.   This isn’t necessarily bearish but typical price-action in which an extended move hits supply.   Bears would gain upper hand if we reversed hard and fast away from these zones while bulls would win the hand if we can base near resistance and digest the move.    Longer trend we’re still in bear territory but shorter time-frame bulls have been printing better price-action.
We came in with several short spots on the $QQQ (50,100 and 200SMA) and the first one, 55.7,  hit and is currently working   (today’s high 55.74)
$IWM hit resistance and faded:
$XME hit resistance and faded.   Again though this could become a bullish set-up IF we can base under and digest the move.
Disclosure: short QQQ
Update: covered 3/4 on move back below weekly 50SMA, and last partial stop now under break-even at 55.5