The market made our expected pullback, breaking the 1-hour Ichimoku Cloud indicator and signaling a trip down toward the 4-hour Cloud and key zone of 4113. This unfolded perfectly and started a nice rally toward the highs, until negative tax news hit the media. The market dropped right back down to the 4-hour Cloud and that 4113 zone. The biggest thing we need to watch now is the possibility of traders panicking and selling into the weekend for a full reversion to the mean, or the possibility of this becoming another great “dip buy.”
We will continue to take each session day-by-day with the “if this, then that” mentality. Stalking names like SQ and NVDA as they near their daily mean with the overall market.
Stay Focused!