The Market Pulled Back Hard This Afternoon. Here Is What I Saw.
This afternoon the market handed us a test. We were running strong all morning. Then around 1PM it pulled back. A sharp selloff that dropped us back through the levels I had been watching, shook out a lot of positions, and had people second-guessing the whole move. I watched it the whole way down and I did not panic. Here is why. My 40 held. The W-shape that had been building through the afternoon was still intact. The wicks on the down candles told me sellers were trying to push lower and buyers kept stepping in underneath. The momentum slowed but it never actually rolled over. That is the difference between a pullback and a reversal. A pullback tests you. A reversal breaks the structure. The structure never broke. The buyers came back, reclaimed the levels, and we pushed through $693.67 into the close. That is the reclaim I needed