This week started off with a very clean one directional move to the upside (traders love these) but ended with chop. I warned about this in yesterdays update stating:
“Everyone seems to be looking a melt-up to ATHs or the start of a bear market and I’ve found markets love to just chop people up in these conditions. As long as we are inside this triangle, I think this is the regime. In other words, save the “greed” trades for outside this structure. Inside it, we will see lots of moves that go one way, reverse, chop up etc. Level-to-level scalping perfect inside this”. Despite this, the levels held up well: 4450 was key support and it offered two great tradeable bounces with bulls unable to clear the 4530 resistance level necessary to regain control. Zooming out, we’re chopping now to establish a trend leg