The 15 minute trend is still carrying this market with ease and that is typical in most of the sharp reversals we have seen during this 2 year rally. The only index entries that you could have taken is against the 15 minute trend using one of the higher swing lows as a stop. However this action in the indices is setting a good environment for stocks which is allowing more setups to trigger and actually follow through. Whether or not the index is extended really doesn't matter, it's more important to be looking at setups individually. Stocks can still trigger and have great trends while the index is just consolidating or even pulling back slightly.
Looking at 65 minute charts this weekend. Like I was saying last week IWM is using the 65 minute as it's most relevant time frame as the other two are trading in 15 minute. I have no idea how long this 15 minute straight up price action will last but lower time frame trends typically have a shorter life span as they are quicker and more unsustainable relative to 130m or 65m. As for the big picture all of them have met their previous daily chart highs even after a lower low so there is nothing to fault them for at this point. The IWM is still working off of that false breakdown as well, the one no one wants to acknowledge.
The watch list is mostly the same as last week with the removal of the short list and some small adjustments made the the long. The whole market right now including individual stocks is using lower time frame quicker trends 30 minute and lower so that is something to note and trade accordingly. That's all I got, things are as simple or as complicated as you want them to be. And I keep it real simple. Thanks for reading
Trade well,
Michael
