How Last Night’s Video Determined Today’s Live Trading

Welcome back everyone! Let’s do a follow up to yesterday’s video.

I said yesterday that we had distribution bars and falling resistance below them. Seven minutes into the market open I gave another update to my live trading room focusing on that. I also talked about how the DAX hit the falling resistance. The DOW was also right up to that level. We had a real challenge taking place on the RUSSELL, S&P and NASDAQ. The NASDAQ wasn’t from a distribution perspective. It was from the resistance coming above. We were in the middle caught between the support and resistance floating out there.

We did hit the resistance levels this morning. This did cause a lot of stress at 8:30 this morning. We were still struggling with the same thing at 9:30. The RUSSELL had made an attempt to break through yesterday’s high. It was really struggling up there. The S&P was in here as well.

The first hour was really struggling. That caused a lot of whipsaws back and forth. We had some back and forth up to around 10:00 AM CT. What happened after was great. We saw that the momentum indicators was declining and the price was holding in there. I was looking for a failed divergence to break above. We ended up getting that. My institutional indicators were firing off. That led to a 25 plus move to the upside. That was for around 100 ticks to the upside. That led to several great trades in the Live Trading Room. I was using the concept of failed divergence.We were also expecting chop this morning because the daily chart was going down and the hourly was up on the NASDAQ. When you have the two powerhouses fighting with each other it could be choppy. That happened right off the U.S. Open. I waiting till that smoothed out. The sells also didn’t sell which led to the buying.

You guys have a great night and I look forward to seeing you in the upcoming videos!

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