Despite the Labor Holiday rally, S&P could not hold onto it’s early gains Tuesday and dropped back into Friday’s range where it did find support at 1632.00 “marker.” Late day bounce from that level settled price near VTMP balance 1640.00.
Overnight trade is very light with price marginally off 1.25 handles at 8:15 am. This Friday’s NFP Employment Report should act as a dampener of price activity unless there is an outside catalyst to tip the scales. So for right now price is balanced at the 3D CPZ (1640) within the seven-day trading range.
Key parameters remain 1648.50 on the upside as we stated in yesterday’s strategy blog as anticipated resistance. On the lower edge 1632.00 marker from prior session trade stands out as key level to hold for those in bullish camp. Any violation or penetration of these levels will tip scale directionally. Until that happens trade strategy will be to buy dips and sell rips at key zones. There is a lot of price points between these levels, so there certainly is room for adequate movement on upside and downside…so remain focused on valid trade opportunities.
We will update dynamic levels as necessary in Trading Room.
I think in terms of probabilities. I do not know, all I have are probabilities. Probabilities are at the core of my decisions. Through consistent application of the probabilities, I will win.