We opened way above value right .So normally you would think we are looking for a reversion or a short trade. Many mean reversion newbies get confused by this. ALthough we do believe the market is mean reverting to some degree that does not mean the timeframe we are looking at is in that process all the time. SO one way I like to see if my timeframe is totally off is to look at internals. My smaller timeframe intervals did show some point of fatigue. But look at the NYSE tick below. No real weakness at all. This tells me that the timeframe I am looking at(day or smaller) is not the timeframe that is currently holding the market. SO I step aside and let those short signals fade away into the dark. We really need to see a pullback that doe not hold to start thinking about the other direction. Will it happen , YES. Today Probably, right now?, Probably not.
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