Wednesdays trading session was quite clean:
after 2 'low to high' days, we traded 'high to low'
the market tested up into 1514.25 resistance (previous days highest volume price) for a beautiful morning reversal opportunity to enter for the 'high to low' day.
note that the market tested towards the 15-min 20ema FIRST. The market will test this ema on the vast majority of days so if it starts too far away from it, it often will 'correct' towards it at some point. measuring the distance to the 15-min ema is a very nice and simple way to measure 'location'.
also, the early afternoon move up towards
VWAP never 'accepted' the
VWAP price. It tested under it and rejected it. This information is very valuable. Along with -2500 breadth (advances - declines) and 'down volume' that swamped 'up volume', you had nice tape-reading signals to tell you the odds remained on the short-side. these signals were loud and clear that this could truly be a dynamic down day (this kind of day is rare so have to 'go with' it when it does happen).
the day was a bit unusual in that it broke lower much earlier than it has done on other strong down days. but, the market clearly alternates in it tendencies. this is why the concepts are really the important thing. focus on the concepts and integrate them with right-brain thinking.