So, all last week the hype, and what was keeping the pumpers pumping, was good news on the trade war front. The news - talks would resume, and China would not immediately retaliate. But, there were 2 key words in there that the bulls didn't want to think about: "talks" and "immediately."
Talks would resume - So what? They've never really stopped "talking."
China would not "immediately" retaliate - So what? They didn't say the would never retaliate, they just said they wouldn't right now.
The other key piece to all this, and what the pumpers were failing to mention, was that Trump's tariffs on $125 billion would still go into effect on September 1... and yep, they went into effect right on schedule. This trade war has NO end in sight. Face it! The volatility will continue.
Technically speaking, the e-mini made a gravestone candlestick right at huge resistance on the daily chart. And, it actually looks as if another gravestone is forming today. But, the gravestone that formed during the last daily period, was on big volume. It was noticeably more than previous periods. Sure, the gravestone (therefor the volume) was green... BUT, think about what happened with it: The bulls shot the price up to resistance and couldn't hold, and the bears stepped in, taking control, and pushing price all the way back down. Don't forget, this key level of resistance sits right at the 61.8 Fibonacci level.
I see two options for this week: 1) We simply move down to retest the bottom of the ascending triangle. Or, 2) we break through that and retest the bottom of the entire consolidation range. From there, either option 1 or 2, I am unsure at the moment. The way I trade is day by day. I do not worry about next week or the week after. If I have a trade open that I think I can ride further into the profits, I will. But I don't worry about that until the time comes.
My moto with charting is SIMPLICITY!! No need for a chart to look like a laser show.
Talks would resume - So what? They've never really stopped "talking."
China would not "immediately" retaliate - So what? They didn't say the would never retaliate, they just said they wouldn't right now.
The other key piece to all this, and what the pumpers were failing to mention, was that Trump's tariffs on $125 billion would still go into effect on September 1... and yep, they went into effect right on schedule. This trade war has NO end in sight. Face it! The volatility will continue.
Technically speaking, the e-mini made a gravestone candlestick right at huge resistance on the daily chart. And, it actually looks as if another gravestone is forming today. But, the gravestone that formed during the last daily period, was on big volume. It was noticeably more than previous periods. Sure, the gravestone (therefor the volume) was green... BUT, think about what happened with it: The bulls shot the price up to resistance and couldn't hold, and the bears stepped in, taking control, and pushing price all the way back down. Don't forget, this key level of resistance sits right at the 61.8 Fibonacci level.
I see two options for this week: 1) We simply move down to retest the bottom of the ascending triangle. Or, 2) we break through that and retest the bottom of the entire consolidation range. From there, either option 1 or 2, I am unsure at the moment. The way I trade is day by day. I do not worry about next week or the week after. If I have a trade open that I think I can ride further into the profits, I will. But I don't worry about that until the time comes.
My moto with charting is SIMPLICITY!! No need for a chart to look like a laser show.