My previous posts on June 23 and 4 referred to the Weekly charts of YM, ES, NQ & TF and the 23.6% Fibonacci level:
As I looked at these charts again this morning, I noticed that this Fib level co-incides roughly with the level that the YM, ES & TF were at just before their very sharp decline in September 2008. It may be necessary for these e-mini futures to retest this level and establish a credible support area from which a meaningful and viable advance can once again resume with market confidence (preferably without government interference). If this level were to be retested, the NQ would have to pull back to its 38.2% Fib level. If such a scenario were to occur, price may bounce around in between the 50sma (red) and 200sma (pink) before re-establishing a new Weekly trend. BTW, the 200sma on the TF presently sits just below the 666 level mentioned in my post below:
Since psychology plays such a big role in trading, this reasoning may make some sense. I realize there are a lot of other factors in day-to-day market psychology, and this is just one potential factor that may (or may not) come into play. I am open to trading market reactions to various events as they unfold...it pays to have one's radar tuned in...and, accordingly, my stop loss is always set as I daytrade...gives me a chance to get out my "Trading for Dummies" handbook to see if I've done the right thing... :-)
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