Neutral Zone

Friday’s Quadruple Options Expiration initially pushed prices higher to hit our upper objective zone between 1874 – 78…HOD 1876.75…only to be followed by Noon Reversal that drove prices down to our stated lower price objective 1856 – 58 zone. It’s a rare event that both upside and downside price objectives get hit within same session, but with options expiring, we know anything can happen…and did.

Overnight trade is relatively quiet with prior session low (1855.50) holding support…IF this level is violated and converted, THEN lower price objectives measure 1850 – 53 zone, followed by 1845 – 48 zone. Initial upside resistance is currently 1863 handle…IF overnight high is penetrated and converts, THEN 1866 – 1869 zone becomes objective.

Early morning trade has price trading in what we’ll classify as the “Neutral Zone”… Oscillating around the Three-Day Central Pivot Zone (3DCPZ). Trade expectation is for early “non-directional” trade action until either of the upper and lower boundaries outlined above is breached.

Remain Flexible…Follow Your Trade Rules…ALWAYS USE STOPS!

Good Trading…David

Habitude Five
I think in terms of probabilities. I do not know, all I have are probabilities. Probabilities are at the core of my decisions. Through consistent application of the probabilities, I will win.

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