We had a great reversal on Thursday (third test of the Oct 10 lows, breach of the Oct. 10 lows for an hour, only to shake out the weak players followed by a mighty bounce just before close). On Friday, the market sold off in the last hour as well but did not breach the lows on Thursday, which confirms that the market wants to go higher and is playing tricks constantly only to shake off the weak players.
I went long on Friday's sell off and am in some red right now. I see this as a low-risk entry with clear exit point defined on the lower side. I suspect we see a rally next week, which will take the indexes to their 50-day EMAs! I will exit my long positions then and go short!
Lets see how things progress!
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