Cycle High

In yesterday’s DTS we highlighted that If price was able to convert 1949.50, THEN there was a 60% chance of reaching 1955.50 price target…High of Day came in at 1954.75 (TargetMaster Level1), so effectively a dead hit. Mid-Afternoon trade price tested key support 1946 handle before reverting back to session Volume Trend Mid-Point (VTMP) at 1950.00.

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.

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…STATX Zone 1933 – 35 becomes a critical hold on any deep pullback as there is nothing of importance until 1922 – 24 zone.

Trade Strategy: We’ll remain a “cautious buyer” at current levels as risk now is elevated for a pullback/corrective move as probabilities have increased for a more significant Cycle High. As always, we will trade what Mr. Market provides us for opportunities with deep gratitude, as this is the “best business in the world.”

Stay Disciplined…Follow the Rules…ALWAYS USE STOPS!

Good Trading…David

Habitude Ten
I know anything can happen, and I can handle anything that does happen. I am open minded. My thoughts and perceptions are clear. I know what to look for. I have rehearsed everything. I adapt to change. I will listen to my indicators and the patterns that emerge. I will adjust and not demand that things continue as they first started.


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