Yesterday’s bounce retraced about one-third of recent decline…not very impressive given how strong bulls have been. That said, a retest of 1632-35 zone seems necessary to determine if there is solid footing for further up for bulls or whether there is a definitive “change of character” advantaging the bears.
Today’s supply zone is between 1652 – 55 and demand zone 1632 – 35.
IF 1654 is penetrated THEN price projects up to 1661.00. IF 1634.25 gets violated THEN the decline has potential down to 1621 – 24 zone.
Bears currently have control of the ball, so give them the initial benefit for the first time all year. Pre-Holiday trade may be lighter as today unfolds, so remain focused and disciplined to trade setups.