The Volatility Game

I took this screen shot 15 minutes or so ago and got distracted. I was going to say look at the obvious support line and the high volume break of it, stops hit. Then I was going to say watch for volatility up and down around this as traders reset stops on newly formed support (the same level just broken.).

This is a mini version of the Judo concept, the longs had their stops hit, which created buying pressure which moved prices up. New longs will enter as other significant technical levels are reached, this is how the intraday volatility game works and on a daily chart it's no different, that's why I wanted to see the SPY higher a few dys bck, because it trapped longs. As I said last night, they may gather more firewood-longs, you can't tell what their tactical intent is, just have a good idea of the strategic intent. So we watch, when the level is broken again except to see volume rise again and then we see where they take it from there. Tomorrow is "The Great Revision" to the guessing game-fill in the blanks Washington got to play last week. The numbers are out, Wall Street knows what they are, we just have to wait, but I'd guess the revision will be lower, if it's dramatically lower or if we see bad numbers then expect to see a panic from the bulls as this whole month has been based on bullish readings, some of which were guessed at. A reversal of that sentiment could be key.

AAPL made a breakout high and turned down, there's a negative divergence there so that looks like a bulltrap.