Recently we've been talking about how important closing trade is, we had 4 of 5 days (only Black Friday, a half day didn't make it) in which the market closed down in to the close, this is a change of character from the normal closing ramp and while not a smoking gun on its own, it is a change of character and changes of character lead to changes in trends.
Well again as the afternoon trade got more insane, even more diffused among the averages as we have been talking about (another change in character) and just about everything else including the VIX, leading indicators, sectors and individual stocks, I was hoping closing trade would provide some clarity.
I'm not comfortable to the level of yesterday when I thought virtually for sure there would be a small intraday bounce, however I think whatever happens tomorrow, there's likely to be a lot of profit taking in to the close before Friday's 8:30 a.m. Non-Farm Payrolls.
I'm going to try to show you some of what I saw and think may be important, but I'm not making any case for the very near term tonight unless futures provide additional information. I also am not making any changes, no hedges, no counter trades, etc. I don't see a high probability reason to change any of the positions that all had high probability reasons to open, if I did so it would be simply reacting out of emotion.
Charts coming
5 years ago
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