New Cycle

Buyers failed to keep control last week as selling pressure continued to build..We had opined in an earlier DTS Report that: “Longer-Term Bull Structure remains largely intact, but additional selling pressure may begin to develop in coming days/weeks to challenge the bull’s resolve.” Selling has now materialized with Market Internal Metrics continuing to deteriorate…Question is whether last week’s price action is the beginning of a deeper more significant correction. STAY TUNED.


Today is Cycle Day 1 which begins a new probe for “secure low” from which to stage next auction cycle rally. Price has reached initial projected Average Decline Levels, so we will be looking for some early test of these levels for support.

Average Decline on CD1 = 19.50 – 21.25; Odds of Decline > 10 = 70%; Odds of Decline > 20 = 40%; Average Range = 18.75; Max Range = 22.00.

***Note: The odds highlighted are NOT predictions, rather a guide based upon historical observed occurrences.

Today’s Hypotheses:

Scenario 1: The current low of 1968 will be marked as “key low” as it is equivalent to Avg Decline on CD1. IF this level holds, THEN there is a 56% chance of reaching 1977.25 – 1978.50 zone. IF price can continue to penetrate and convert this zone upside targets 1979.50 – 1981.50. Above this zone is Three-Day Central Pivot Zone 1982.25 – 1983.75…TargetMaster Range Breakout Level is 1986.25.

Scenario 2: IF price fails to convert 1977.25 – 1978.50, THEN additional selling may develop…Violation of 1968.00 low suggests buyers have retreated and price would need to probe lower levels to find a secure low…Levels to be mindful of are: STATX Zone 1969.50 – 1967.00; 1965.50; TargetMaster Breakdown Level 1961.50.

Trade Strategy: We will remain flexible to trade in either direction today, though we will be looking for evidence of a new “secure cycle low” from which to establish higher confidence long trades. Failed auction from higher zones will provide short-side trade opportunities. As always, we remain aligned with dominant force…We take valid setups and manage the risk.

Stay Focused of Trade Process…Not the Outcome  ALWAYS USE STOPS!

Good Trading…David

Habitude Four
I am at ease with controlled risk. I will risk and I will win. I am courageous. I will take a chance. I manage risk to my comfort level. Risk keeps me on my toes, keeps me alert and at the top of my game.


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