Really, it was based on the "two-way," and on, like, the way it was grinding there, instead of popping. It would get to the top of that little range, and just go to sleep there, nobody was getting squeezed. The difference between two-way and chop is that two-way has the feel of buyers coming in, then sellers coming in, sort of casually interleaved. Chop has the feel of people missing at both ends, and getting squeezed in both directions.


It had the feeling of buyers who were picking their spots, and the market was heavy, dropping down to meet them. That having been said, the buyers that came in at that first 46.5 low were a little more agressive than I would have thought, and one reason why could be that I had failed to consider how the market had gapped up over night, making the uptrend from the open look smaller than it was. This also sucked in more trend traders, and made slightly more of the first selloff trend trades than I woudl have thought, and caused more to get back in as a momentum followthrough of the buyers that came in at 46.5.


But, once it got that deep - meaning given the price where the buyers 1) hoped to buy, and then 2) actually got - I wasn't really afraid of a long uptrend. Buyers don't hide that well for no reason, and there was no news or anything weird going on today to suggest they would all come charging in out of nowhere at some odd time. As it was, both at the close, and after lunch, the sellers were more traders than underlying buyers, as I had initially thought. Because of the gap open, traders kept getting stuck long on a dull day, and they paid at the close.


Oh, plus, it peaked out too early. On a good uptrend day, I like to see it make a new high after 11:00, meaning the uptrend traders have a chance to take profits before lunch. This thing collapsed back on itself before 10:30, and couldn't really sniff out a pop anywhere on the way down. I know that's pretty thin, but sometimes a lot of little things contribute to the character, and then you get lucky enough it goes your way, and you think you were smart.


eLROY