As March comes to a close today, much of the action can be characterized by wide swings pushing the upper and lower range extremes. So indeed, price seems to have traveled great distances, but when compared to February settlement, price has essentially gone nowhere with barely positive reading. All this “wheel-spinning” has created a very wide “balance zone” value-area within 1845 – 1865 with a slight skew at the upper edge High Volume Node (HVN) 1865… Price will need to break through and convert either of these zones to expand directionally.
Tom Malone of TTTHedge.com, our affiliate, states:
“There is every reason to be optimistic: The major indices (S&P 500 and Dow) have held; the public is scared (bulls are at the lowest in seven weeks, according to AAII); short interest is at the highest level since September 2011; and Investment Dealers’ Digest points out that April is traditionally the strongest month of the year for the Dow, averaging a 2% gain since 1950.”
So…April should be an interesting trading month!
June E-mini S&P’s (ESM14) this morning are up +0.31% in quiet trade, in middle of balanced value area zone. We begin the session with a “neutral” disposition and will let Mr. Mkt give us hints for next directional move. Just not too much to get excited about today…but stick around as anything can and does happen.
IF price can penetrate Prior Day High (PDH) 1859.50 and convert, THEN upside price targets 1861.25 – 1864.50, with extreme levels measuring 1866.75 – 1870.25. Any pullback in price is anticipated to find a buy response within 1847 – 50 zone (3DCPZ). Any trade beyond these parameters we will dynamically update in Trading Room.
Remain Flexible….ALWAYS USE STOPS!
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.