As the S&P continues it’s slow grind higher it is supported by improving Advance/Decline Lines together with a bullish Inverse Head and Shoulders continuation pattern. Small Caps have been the recent laggard, but there are now early signs of relative improvement, as the Small Cap AD Lines are at critical inflection level. Until the underlying Market Internals turn negative, the bear case as many continue to support (wrongly so), is difficult to defend. All the evidence continues to be supportive of the bullish case.
Yesterday was very quiet trade with a range of just 6.50 handles, which is historically low. We had only one trade in the ES mini, netting +2 pts that took nearly two-hours to fill…now that is slow. Hopefully, this is not a prelude of summer trade which is normally quiet.
Overnight trade is marginally higher as price reached our stated target zone in yesterday’s Daily Trade Strategy. Price is currently above the PDH (1910)….IF this level holds on any pullback, THEN initial upside 1915, followed by 1917 – 1918.50…1920.25. Failure to hold 1910.00 suggests deeper pullback into prior support zones…1906 – 1908 with Three-Day Central Pivot Zone between 1902 – 1904.
Maintain Focus and Discipline…ALWAYS USE STOPS!
I am ready to trade. My patterns are verified. My homework is complete. My mind is clear. I have rehearsed everything. I am prepared strategically, emotionally, and financially each and every day.