After gapping up five points we spent the six and three-quarter hours making slightly less than a seven point intraday range. That’s rather tight when you are searching for a trade.
I can point out several divergences today, but they are not ones I would trade. The upper limit of today’s range did stop at a 62% Fibonacci A-B-C, but most of the moves were like Friday — they didn’t quite hit good Fib levels and/or didn’t have anything else going for them.
I’m being more and more cautious, still expecting additional downside action. As for today, there’s really nothing to write about, so I won’t. Back tomorrow.
I actually love sideway market. This way we really know (with an educated estimate) on when to buy and when to sell. Just buy the dip with a tight cut loss (since if it breaks its support, then it’s a bearish season, not a sideways anymore) and sell when it hits resistance (and buy even more when it breaks that line).
Oskar,
There’s nothing wrong with a sideways market, but I prefer it when they:
1.) have a bit of range and
2.) give me a few signals.
Lowell