As you can see, price action dipped down, which hit my stop order at 522. 522-515 1/2 = 6.5 points x $50/pt = $325 per contract. As a percentage of margin 325/1656.25=20% which isn't bad in 16 calendar days. But I can't forget the unrealized profit at the peak on 11/29/19 was 546-515 1/2=30.5 x $50/pt=$1,525.
Today formed a Doji candle which connotes indecision. Certainly not a conviction of sentiment to the short side. Also, we went down to the 61.8% Fibonacci retracement at 518 3/4 (the low was actually 519 3/4 but close enough for trading purposes) . This is often the end point of a retracement, but doesn't have to be. We're still north of the 20, 50, and 200 dma. These give reason to watch for a move back up as early as Monday.
However, stochastics are only mid-range (not oversold), we closed under the 8ema, and the 3ema is below the 8ema. This tells us we have to consider the odds are still to the downside. We can certainly see a deeper correction to a level mentioned in yesterday's update .
So, now that I'm out, I'll just watch how things develop and look for an opportunity. Not enough justification to enter long or short.
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