The markets are an amorphic phenomenon that juggles rational and irrational inputs. No amount of technical analysis can effectively predict short term movement. It’s important to remember we are able to control one thing and one thing alone – ourselves. Lines on a chart may help inform decision making but expecting our movement expectations to playout is foolish. IWM gapped down to open today @ $194 dropped lower to 191, then rallied to $201. We entered and exited a bear market in one day (in IWM).
Trading short term chop is tricky. If you find yourself being whipsawed into and out of positions, consider establishing slightly longer term-positions with carefully sized positions. Volatility isn’t going anywhere anytime soon.