tortoise

R3 didn't hold, so ES fell back to and closed roughly at R2, just a bit under last week's high. A beautifully ambiguous finish. Today's action was "unexpected" only insofar as it was out-of-character for markets in this QE era, where strong trends almost never fade, let alone reverse hard, in the afternoon. But it was a tactically savvy close, given the uncertainty surrounding economic data to come this week.

Can we have a meaningful drop (from here) with AAPL making new all-time highs? Not meant as a rhetorical question. But...

Indicators are signal processing. That's it. Signal processing is useful, so long as you're clear on the signal being processed. I began trading as an indicator junkie. Later, I came to see indicators as "useless" and relied on price action/market internals alone. Then, as my understanding of market dynamics deepened, I brought a couple of indicators into the picture. I have found them, most assuredly, "useful". But... I use them now with the understanding of what they are and what they are NOT. What they are -- visual representations of signal processing algorithms What they are NOT -- substitutes for a thorough understanding of what's really going on.