Cycle Day 3

The current 3-Day Cycle is playing out perfectly…Let’s review: Cycle Day 1 (Friday), we wrote in DTS cautioning for a deeper downside move, with 1960.50 as anticipated low (actual low 1960.75)…Cycle Day 2 (Monday) continued weakness pushed price down to projected average range low of 1961.75 ┬áper Scenario 2:IF Prior Day Low is violated and converted, THEN price projects 1964.75, 1961.75, down to 1958.50.” Actual LOD = 1960.75…So as far as we are concerned..direct hit!

Today is Cycle Day 3…As such, there is a 90% chance of satisfying the bullish cycle with a high above 1968.00 (Day 1 low) up to potential of 1986.50…based upon average 3-Day Rally.

Odds of 3-Day Rally > 10 handles = 82%…> 20 = 54%….These odds project upside price targets of 1985.75 – 1986.50.

Today’s hypotheses:

Scenario 1: IF price penetrates and converts 1977.50 (2 day high), THEN there is a 65% chance of achieving a high between 1978.75 – 1980.50. Extreme range targets 1982.00 – 1986.50 zone.

Scenario 2: Failure to convert 1977.50 suggests further back n fill consolidation required, with initial support marked between 1970 – 72 zone, then 1966 – 68 zone. Violation of prior day midpoint targets prior low at 1960 – 62 zone.

Trade Strategy: With bullish cycle intact, we interested in buying pullbacks to key Decision Point (DP) Levels highlighted above…Failure to exceed upside levels and we would entertain short-side setups…Remain flexible to two-sided trade opportunities…Follow the trade setup rules…ALWAYS USE STOPS!

Good Trading…David

Habitude Eight
I can recover from any setback. I have an attitude of abundance. I affirm abundance in the universe. I know I cannot begin to count the stars. I realize the ocean doesn’t care whether I go to it with a bucket or a teaspoon. I know the market provides a river of opportunities. I invest in my capabilities. I will be happy with my results.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS


Leave a Reply