“Float Like a Butterfly…Sting Like a Bee”…Muhammad Ali (a.k.a. ‘The Greatest’)
The Bulls have certainly been stung by the “Bee” this month and they have been stampeding for the exit. Does anybody even remember the the term “liquidation” over the past six months? Well, it’s back and in a huge way…After breaking multi-day range support level at 1125.00 it’s been nothing but “sell…sell..sell”. This week has seen some bit of price stabilization between 1080.00 support and 1100.00 resistance…But is it enough to turn the momentum around? We are skeptical…The bulls will need to prove it given the fact that the last five days has seen continued high volume with negative delta readings. (see chart below)
First major hurdle for the bulls is to prevent further price deterioration and then auction price above the 3-day midpoint residing at 1091’s and keep it there…A large hurdle indeed given current market momentum, but as we all know, anything is possible.
Key Support Zone remains 1075-1080
Key Resistance now is at 1100.00
The 10-day Average True Range is now 19.50 and we anticipate the current volatility to continue offering traders an abundance of “profitunities”.
Be Flexible…Know Your “Edge”