Key “Line in Sand” for Bulls as stated in Tuesday’s trade strategy was 1659.75…Low of Day (LOD) was 1660.00! Bulls defended that level aggressively during day 2 of 3-day Bullish Cycle.
Persistence until Resistance has been the ongoing theme and continues to be until a reversal signal is given. Top pickers (shorts) have continued to fuel to upside daily. Price has gone “parabolic” which is unsustainable, so we remain vigilant for sharp reversal while trading the long-side.
Based upon 3-day Bullish Cycle there is potential to reach upper targets measuring 1681.00 – 1685. IF prior day high (PDH) is penetrated THEN that upper target is “in-play”. A failure at PDH would setup an intra-day reversal to retest 1660.00. IF the 1660.00 level is violated, THEN there is a 48% chance of making a low down to 1649.25.
Currently Globex Low stands at 1664.75 which is the midpoint of yesterday’s IB Range. This becomes the initial “key marker” support on any pullback. The 2-day range balance point is 1665.00 – 66…Prior Day Close (PDC).
The bullish side must continue to be respected until a clean reversal is given.