S&P broke temporary support at 2066 level and as outlined in Tuesday’s Daily Trade Strategy 03.10.15 long liquidation unfolded, driving prices down to symmetrical swing support at 2044 handle.
Overnight night trade is quiet with no further price weakness…Odds are high that sellers have been “flushed out”, which then favors a retracement bounce which targets the 2066 violation level.
Today is Cycle Day 3 (CD3)…Odds of 3-Day Rally > 10 = 82%; Odds of 3-Day Rally > 20 = 68%; Average Range on CD3 = 17.75; Max Average Range = 21.50; Possible High = 2066; Possible Low = 2026.
***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Scenario 1: IF Price can hold above PDL (2041.25), THEN clear and convert 2054 Central Pivot, odds (68%) favor a rally attempt targeting 2062 TargetMaster Range Level. Above this level targets 2066 (CD1 Low), then 2070.25 3D CPZ.
Scenario 2: Violation of PDL (2041.25) targets 2038.25 – 2036.25…then 2030.75 – 2029.25 zone…Extreme Range projection measures 2026 TargetMaster Breakdown Level.
Trade Strategy: Our tactical trade strategy will simply remain unaltered…We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus on Bull/Bear Stackers and Premium/Discounts. As always, remaining in alignment with dominant intra-day force increases probabilities of producing winning trades.
Stay Focused…Non-Biased…Disciplined 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.