There is no denying the strength of the Bulls…and with this strength, begets even more strength, even if it’s shorts needing to cover positions or buy stops getting triggered…buying is buying. Yesterday’s gap up never even looked back from the opening print…Market Internal metrics were extremely positive on all fronts..AD Line…Up/Down Volume Ratio..etc.
With yesterday’s upside surge, price is now near to the upper channel line at 1875-78 zone…this channel line has acted as resistance in the past. We would anticipate similar responsiveness from these extended levels in the short-term. Any pullback in price is expected to continue to see responsive buying at key support zones.
Yesterday’s price hit our TargetMaster Breakout Target at 1874.50…We would anticipate this level to be near-term resistance…IF penetrated and converted, THEN further upside price targets can extend upwards to 1880 – 85 zone.
Failure to convert Prior Day High (PDH), calls for some back n fill price action with lower support residing 1864 – 68 zone with responsive buyers within prior Value Zone.
Trade Strategy expectation is Range Type development within prior day’s parameters. We will continue to favor buying pullbacks as long as Bulls continue to show buying enthusiasm. As traders, we remain flexible to play both longs and shorts as warranted.
Remain Disciplined…ALWAYS USE STOPS!
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.