These six markets will tell a trader nearly all they need to know about the broader market psychology, and right now, it’s not so bullish. But when the market is choppy, right when traders start turning bearish, it’s time to start thinking about the other side of the trade.
In this video, we talk about the major selling we have had in the last 2 days and where we might go from here.
Contrary trading is critical in this environment; here’s why.
First, you have to know what’s leading. Then you need to apply this second and third thing.
The double top in the S&P was just the beginning. Double tops at all-time highs will test the conviction of buyers who are standing on shaky ground after significant miss in ISM.
The sell-off in the equities market will be tested tomorrow, since follow-through to the downside has been difficult to come by. If the buyers are spooked by the ISM data, then our watchlist is going to be built to take advantage of risk-aversion.
