Pre market Post market We come in with a non true gap higherGiven the conext of a consolidation in an up market and the excess on the bottom i am interested on the long sideI try two times with potential failing  of a down move which could have been the correction of overnight inventoryBut market is not able to go higher and falls the whole dayWe end with a trend day / liquidation day downIs this the end of the up direction? Lets see what we have:88 points of range is serious selling but not catastrophicSame is true for the volume with 1.5 mioWhen i look at the starting point and the way they sold it i think there was a big part of old money and not so much new money in this sellingWe have to wait and see. If we see value clean lower tomorrow and in a few days acceptance below the trend from low of year i will of course change my opinion On the bigger picture the weekly in one time framing upI think it´s important if we finally see a breakout of that december high or if we fail to do thatFor now everything is ok for the bullsEvery dollar with a long only benchmark that is not invested is a short dollar which eventually has to cover

Lets see what we get on top of yesterday trending day Remember that the market on the larger timeframes is trying to break the big 2022 down trend Gap up and small fade to y rth h and poc. Poc was on top, indicating that the auction is not finished Not able to go deeper in y range As an (sometimes too) pro-active trader i always buy the first failing down -move in these auctions Getting my max max targets easy with my "scale.-out-triangle" I tagged it as a trendday. But it is more a covering day or lets say something in between

We have third friday of the month = bigger options expiryThis can sometimes lead to pinning in single stocks which can make the index choppyOpen and test downFail and go trendday upOpen-test-drive trending day My rule no 1: See what is... not what should be

Market trading near swing highSuddenly with some fed-speaking they start to sellI tried a long at last weeks vpocBut they sold it off the whole day with a trending dayClassic buyers shut off, where one day of selling negates multiple green daysOne day doesn´t make a marke, but for now it looks like we roll over

Pre market narrative: We are in an 11 day balance areaIn that sense the market is in BalanceIt is waiting for new informationTomorrow we have inflation data and ism. On friday we have nfp.Post market summary: We continue to fall in an unimpressive wayWe are not able to go below y rth lPowell mentions something about eventually slowing the pace of rate hikesThe market explodes to the upside with good volumeWe clearly take out the high of the bigger balance area. Remains to be seen if we find acceptance aboveIt is always the same. The market tests into new territory. We have to see if it finds acceptance or rejectionOf course, there was much short covering involved. But i think by far that was not only short covering.Of course, this was triggered by Powell. But to what degree did he really back that move? Was there really so much new information? Or was the market anyway ready to go higher?

We ended the day before with a spike A spike is a price probe late in the session In the next session it is interesting to see, where we get acceptance relative to the spike We opened above the spike and never tested inside it.  Consequently covering started which developed into a trending day Very interesting so see how strong the market ist despite these bad earnings in tech stocks

We have a 4 day balance area which is inside of a bigger 4 week balance areaWe open at the lower end of y range and the 4 day balance areaWe test below and failWe move up strongly almost to the upper end of the 4 day balanceNot a classic trending day because we had a strong corrective move What about next trading week?There was much covering in this up-moveWe will see if longer term buyers will also come inThe last rallys were all sold offMost important earnings weekBe objective and open to all possible outcomes: 1) look above and go 2) look above and fail 3) door no 3 is balance,Do not go into overnight swing positions. These will lead to bias and kill your daytrading objectivityStart each day flat and open minded and enjoy low risk daytrading