As expected, the 1200 level became a fight zone this morning. I was prepared to go either way, short or long. The sellers came in at 1200.25 and quickly overwhelmed the buyers. They were so quick that I missed the best trade entry at 1200 and got my short on at 99.75. When I posted this morning’s commentary, 98.50 was a high volume price. Since my post and during the first 20 minutes, the high volume price shifted down to 98.25 so I used that as my target. This morning was a perfect example of how biases and opinions have little to do with what the market will do. I thought the market was going to run new highs. However, I also knew the market could turn and reject hard at the 1200 area. Thus my trade was against my bias, but I could not argue with the sellers.
Once again, RG will post a chart a little later (we want to keep consistency of charts on the blog).
Update 1:45pm EST: For those of you who can sit through 2 hour trades, the long break out trade from 1200.50 to 1203 worked on the second move back up to the 1200 price area today.