Well this was a pretty unusual and facinating day for the stock indices. After a very unusual overnight news event the market opened 15 points off. As I've mentioned before when you see a modest size gap, its often likely that the gap will fill during the day (even the morning). However, with gaps 3 points and above this becomes less likely as we saw today. Even though most of the action was in the afternoon, it was still a good day.
First trade of the morning was right from the opening candle at 6:32, a short reversal at 809.2 exited for +1.7. The second trade was a 6:49 long reversal signal at 807.6 for +2.2. Third trade of the day was a short reversal 7:07 short reversal at 810.2 for +0.1.
Interesting that on such a big down day that most of the profits ended up being from a long trade.
Net on the morning: +4.0
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Online Encyclopedia of Trading Psychology
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