Home > Lessons from the trading floor > Market Breaks Down$$

Market Breaks Down$$

After a historic 10 week climb to the upside, the markets took a deep breath (for about 10 days ago) , remained in a tight consolidation pattern and over the last 6 trading sessions has provided a pullback that many have been anticipating for the last 6 weeks or so.

Today’s trading session provided us with some of the best follow through we have seen in quite some time, Order flow was negative throughout the session. It was what our traders have patiently waited for. the opportunity to build a position on the short side and to hold for bigger gains. We shorted AMZN early this morning which was good for over 3 points. Both the Dow and Spy closed below their 200MA. Next level for the SPY is around 88.32 and around 8263 on the Dow.

We will continue to monitor the market closely for support levels as we have moved off a bit from our highs but will continue to use the bounces for shorting opportunities.

http://www.keystonetradinggroup.com/concepts/upcomingevents.htm?prAffiliate=BLOG

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