Review of market action for the 3rd of March 2016. Key moments:
(1.1) Market finds it’s first support at around 1975 level. Here visible by the green volume bar from XBP Tape Players indicator, showing Big Money entering the market, and the double red horizontal support bars from the XBP BB SR indicator, that measures the forces the market.
(1.2) In a typical fashion, the market rallied until find resistance at 1983 level, visible again by a green volume bar and a white horizontal resistance bar.
(1.3) The market drops from (1.2) until it finds support again at 1975. Big Money blue bars are seeing entering the market and red horizontal support bars are telling you that this is a support area.
(1.4) This is the most important moment of the day, the moment were the market breaks a resistance and finds support. Whenever you see the horizontal bars from the XBP BB SR indicators flipping sides, that is a key level where market forces pushed the market strongly in one direction, in today’s case up. Also, you can see a bunch of blue bars and two green bars at the end. This is the Big Money hitting the Small Money stops place in the “safe area” behind 1983 ((1.2) the high of the day) and adding more volume to move the market higher.
We could see tomorrow a bit of consolidation (some downwards move), but we had 2 days in a row pushing higher from the lows of the day. The bulls are strong and back in the game.
Here a screenshot of yesterday’s (2nd of March) and today’s action, so you can see how in both days Big Money came into the lows, finding support, and moving the market higher. In both days, the first attempt was fake and the second was the real one. This is to fool the small trader and profit from his/her tight stops.