sive, quick question before we end the week. the down move today stopped below the K-area we have around 3100. why was it able to slice through the K-area but not the 3070 level. i thought we had way more solid SPPT around 3100 than 3070. so if my understanding is correct, why/how can 3100 give way so much more easily than 3070 where we have nothing much really besides a 61.8 level [2973-3233] and a dinapoli objective?
the answer you can find in our school, chapter 10. Speaking shortly, it is very common that market could pierce significant levels, if extension target stands slightly beyond it. In this case level does not treated as broken one - market just pierces it to complete extension. DiNapoli also talks about it in his book.