S&P broke below very critical support level of 825 at 12:55pm (market hours). The drop below support was an impressive 10 points. When the break occurred it brought a sudden surge of sellers but then the decline stopped in mid air and reversed. To say it was a ‘throw under’ is stretching it, but it is what it is.
After watching resistance levels for a sign of the rally failing or continuing the break above the triangle from this morning was the point at which I took a long position (SSO).
This rally has much overhead resistance and I can’t say at this time how long it will last. I will keep raising my stop on SSO the higher this rally goes. But, one thing is for sure… this will fail at some point and I am confident that the lows will be breached again… but the next time they won’t bounce.
More later tonight…
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I did the same but not as soon as I would have liked. What determines your stop point on trades?