A neutral day has longer time frame buyers and sellers operating who each try to move the market their way. This results in a fair bit of choppiness in Intra day activity . It's the day following the neutral day which is important as one part gets decimated and the other party takes control.We are currently seeing a P shaped profile in the markets induced by short covering as the shorts from the previous session have been forced out. The rest of the day can be consolidation or a new move above IB high if new information enters the market.
In an earlier post, I had commented on the market holding or not holding on to the gains following the big move off the central bank Interventions.Clearly the market has moved higher off the news .and we are seeing a double distribution pattern playing out in the markets.
Here is the chart which was posted on Vtrender- 2 over the holiday.It's a composite profile of the past three sessions following the big gap up.
Starting today I intend to be a lot more active at my twitter handle https://twitter.com/Vtrender.
I would be posting titbits on market behavior and the auctions taking place during intra hours.
If you have any questions on the markets or on what we do at Vtrender, feel free to chat me up there
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