Summertime equals Low Volatility…The Average Daily Range (ADR) continues to contract from the historical average of 17.50 handles. The most recent ten (10) sessions have been well below this historical norm…The Volatility Index (VIX) is also currently near the lows of it’s historical range. As such, price continues to grind slowly higher each session as value expands, making it extremely challenging for short-side traders. If you are to consider reversionary shorts, do so only at extreme statistical readings and do not over stay your welcome. For directional traders, tactical strategy remains buy pullbacks to known markers until they fail.
Prior Day High (PDH) at 1690.50 is today’s first “key marker”…IF price can remain above this level, THEN bulls will be targeting the 1698 – 1700 level. As price nears key inflection points, it tends to be a battleground for opposing forces…so remain vigilant.
Any pullback should find some initial support near 1683 – 85 zone. Failure of a buy response can send price deeper back to 1675 – 78 zone for pivot test.
As always, stay disciplined and flexible.
I am ready to trade. My patterns are verified. My homework is complete. My mind is clear. I have rehearsed everything. I am prepared strategically, emotionally, and financially each and every day.