Here are some excerpts from yesterday’s DTS:
“We’ll mark the 1955 level as an “excess high” as buyers appear to be satisfied at current levels. Failure to settle price above the session’s median level (1950) gives us a solid “resistance marker” from which to initiate shorts on bounces. Buyers will need to respond to any new selling above 1945…Failure to do so reinforces the excess-high as more important resistance.”
“…risk now is elevated for a pullback/corrective move as probabilities have increased for a more significant Cycle High.”
“Key Support is 1945.00 handle…Violation of this level targets 1942 initially, followed by 1938 – 1940 zone. Failure to find responsive buyers on pullback suggests a shift in demand/supply equation…”
Key Resistance (1950.00) and “excess high” (1955) are now confirmed with a violation of “key support” (1945) in overnight action. Price has pushed into initial target levels…1942…1940 – 38 zone at time of this writing (8:00 am EST). Buyers will need to respond aggressively from lower zones in order to stem further weakness…Failure to do so reinforces resistance and potential for more major Cycle High.
Further weakness and violation of 1938 – 40 zone increases probabilities for deeper pullback/correction targeting STATX Zone 1933 – 35, which becomes a critical hold test. Below this zone targets 1922 – 24 zone. Any responsive buying on part of bulls will need to be strong enough to absorb any building supply…Initial Resistance is 1945.00 (violation level).
Trade Strategy: We’ll begin to favor the short-side overall on any retracements to violation levels and key zones, but remain respectful of strength of Bull. Continue to be selective and disciplined with our trade selections…Simply: Follow the Rule-Set.
Focus on Process…Not the Outcome ALWAYS USE STOPS!
I am courageous and I always act, even in the face of uncertainty and possible loss. Do not say, no fear. Feel the fear and act anyway. I may be frightened, but I still saddle up. I am not reckless. I act promptly in accordance with my methodology. I respect my calculations. I have a healthy respect and I balance that respect with my courage. I am an explorer. I am on a hero’s journey.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS