The Follow-Through, 8 Mar 2023

2023年3月7日🖼 Daily Technical Picture 📈

➤ Equity prices ended the day sharply lower. It was either this or the other way round. I hope you chose the right side. I'm still sidelined.

➤ It's not all bad being sidelined. I get to think and write more in regards to my insights into markets and their behaviour.

➤ As I said, NO trade was triggered today. It was close. Now I await the "follow-through". I'm pretty fond of that term because it first resonated with me through watching one of my favourite sports: Cricket.

➤ The "follow-through" action of a Fast Bowler in Cricket is very important. It's the ending action after the ball is released. It's vital for a Fast Bowler who steams in at great pace to have a smooth ending action in order to direct the ball as s/he wished, reduce chance of injury and not to be penalised for running on the pitch. It's all a bit technical but it's very important.

➤ A follow-through is just as important when it comes to market movement. It is important for the Bears to see a continuation of today's action tomorrow. Without a proper follow-through, this down move will be reversed easily. That's what I'll be looking out for tomorrow.

➤ Conclusion: A good follow-through to the downside would almost certainly see me leave the sidelines and become a short-term Bear.

NOTES: all price gaps have been closed. VIX did not explode higher as it should have.