Thursday was supposed to be the “Test” day. The day when we flushed everyone out, scared Amateurs into selling so that the Professionals had their last chance to pick up bargains. Set ourselves up for the next leg up.
But it wasn’t convincing. Instead of scared Amateurs, we got Amateurs who were buying the rally (RAMBO patterns) convinced January’s bad dream was all over. Professionals weren’t very active at the Lows, but were instead seen at the Highs. And that ain’t right for a bottom.
So Friday could get interesting – and breaking the range will show the way. If the Emini breaks 1,873 we could be on our way to really Testing the Lows. But if we break through 1,893 then I’ll just have to jump aboard.
Good luck with your Emini trading.