Before the news the SP500 was just waiting for a slight drop during Friday. But the high then at 15.599.70 was just a few points lower than the current price. The key reversal was in place and the market expected not much to happen Friday but that slight drop. No one thought of a short covering rally.
The employment numbers was not great but a little better than expected so a few traders bought and reached the crucial top at 15.599.70 ant got just above it. There were lots of sell stops. So an enormous short covering started totally unexpected. Me and a lots of traders in the world really got a lesson because we had never seen a thing like this ever. Now all odds were off and a whole new situation late Friday occurred which not many could deal with Friday. Monday in Asia no one could do anything either and the same in Europe so far. Technically it is the 2 hr trend that sets the new trend and to do that the 8 MA must have reached the price to eventually keep a lid on it to stop rising or control it. Now it has just reached the price but not get in control of the trend yet. I expect it to be in control before 12:00 but it can be earlier or later.
The employment numbers was not great but a little better than expected so a few traders bought and reached the crucial top at 15.599.70 ant got just above it. There were lots of sell stops. So an enormous short covering started totally unexpected. Me and a lots of traders in the world really got a lesson because we had never seen a thing like this ever. Now all odds were off and a whole new situation late Friday occurred which not many could deal with Friday. Monday in Asia no one could do anything either and the same in Europe so far. Technically it is the 2 hr trend that sets the new trend and to do that the 8 MA must have reached the price to eventually keep a lid on it to stop rising or control it. Now it has just reached the price but not get in control of the trend yet. I expect it to be in control before 12:00 but it can be earlier or later.
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