This morning (3rd April) the market hit a major level, the weekly 200MA. The reaction to the level was around 13pts which is tiny and took the market back down to breifly touch the 50% intraday fib.
The shallowness of the pullback at such an important level tells me that no one wants to get off this galloping horse and there is more upside to come. And there was: the high was 11981 – more than 100pts above the weekly cash 200MA.
A shallow pullback in a strong trend meant that I needed to buy the break – or better still the bottom of the pullback. The 50% intraday is often a good level to trade.
Here’s the pre-open PA context on 3rd April.
