looks like the bull-trap scenario from tuesday is the winner. one could say that GOOG’s earnings snafu gave that scenario a boost today but as you can see from the updated 5 minute chart below, prices had already turned back down and fallen below the bull-flag breakout level before today’s accidental early release of GOOG’s earnings debacle. 6-to-1, half-dozen to the other though, as it would have most likely caused an equally large gap down tomorrow morning had their earnings report come out after the close today as expected.
funny how these “unexpected” events seem to play out right as the $NDX, $SPX, & $DWC were all back-testing those key resistance levels as highlighted earlier today. there’s still some work to be done for both the bearish and bullish cases so until the markets either break-out to new highs or break-down below those previous breakout levels, we are in no-man’s land from a technical perspective. what this means is that tight stops on either side (long or short) are likely to be hit and breakouts (or breakdowns) are more likely to fail. my preference continues to be weighted heavily to the short side and allowing wide stops on those trades while booking quick profits on the select longs that i take.
