Friday’s follow through reversal was quite strong and pushed all the way back to 6/4/13 pivot high. Is this just a “dead cat bounce” or beginning of new up leg?”. We have no answer to that question, so we will focus only on the price levels and let that question be sorted out by the markets in due time.
Friday’s momentum closed price just off session high at 1644.00. Pullback in globex was shallow, so any residual momentum can push price above PDH and if holds targets 1650 – 55 zone. If that zone gets hit, we would look for potential reversal signal to initiate short-side trade.
Today is Cycle Day 1 which typically is weak with an average range of 18 – 22 handles. Failure to rally further should produce sellers and if so, projected pullback zone measures 1620 – 26 zone. Some mid levels to watch are Central Pivot Zone (CPZ) between 1631 – 36 and the 3-Day CPZ at 1620 – 22 zone.
Anything can happen, so remain flexible and follow your trade rules.
I know anything can happen, and I can handle anything that does happen. I am open minded. My thoughts and perceptions are clear. I know what to look for. I have rehearsed everything. I adapt to change. I will listen to my indicators and the patterns that emerge. I will adjust and not demand that things continue as they first started.