After looking at the day action today, my mind goes back to James Dalton and his famous words to analyze the market in his book ” Mind Over markets “
Which way is the market trying to go?
Is it doing a good job in it’s attempt to go that way ?
After today’s tape, from a day-trader’s perspective, we do not have an answer to those questions.We had a neutral day again or a doji with both buyers and sellers involved in the action of the day.Today’s action leaves us with no edge for the session tomorrow.Here’s why?
Buyer camp : Good job defending value area high and bringing value up from yesterday.However inability to drive it further up after yesterday’s momentum was telling.
Seller camp :Seller has showed his inclination to drive prices down from levels of 5380 and upwards.This was evident at the opening itself and later as he cut-off the rally from Value high.However the selling was responsive, not initative.He responded to higher prices only, but could not force prices through value.
So where does that leave us for tomorrow:
Unfortunately not with much, but the takeaway is that we know the seller will be waiting around 5400.