Early attempt to rally in the S&P failed to close the Open Range Bearish Gap…Price violated the Open Range Rotation Midpoint (ORRMP), long liquidation forced price down to our projected daily extreme of 1982.25 outlined in the Daily Trade Strategy 01.14.15. Once the last-seller had been flushed out, a monster reversal rally vaulted price upwards 26 handles to 2008, as Market On Close (MOC) Buy Imbalance in excess of $1B (billion) settled prices at HOD.
Volatility has continued in overnight trade with a 20 handle range, hitting upper STATX Zone (2023 – 2027), then reversing lower to test 1990.00 “key support”. Emotions are running at a feverish level, so tighten-up your chin straps for today’s Pit Session trade.
Today is Cycle Day 3 (CD3)…Price has hit and reversed at projected target of 2027.25…has tested key support (1990.00) and currently (7:45 am) trading at Cycle Day 1 (CD1) Low (2001.00). Today will be a bit of a challenge projecting support/resistance with the wide range already traded, but we’ll give it a “spin of the wheel”.
Odds of a 3D Rally > 10 = 82% (achieved); Odds of a 3D Rally > 20 = 53% (achieved); Average Range of CD3 = 17.75; Max Average range = 21.50 (achieved); Possible High = 2027.25 (achieved); Possible Low = 1970 based upon violation of CD2 Low (1981.25)
***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses:
Scenario 1: IF price can find responsive buyers in sufficient size to hold any test of “key support” (1990.00), THEN odds (60%) favor testing prior day settlement (2008.75)…IF this level is converted, THEN upside price target is 3D CPZ (2018.00 – 2019.50). Successful clearing of this zone should buying momentum remain strong targets 2030 – 2033 zone and TargetMaster Range Breakout Level 2038.50.
Scenario 2: IF price fails to find ample buy response on test of 1990.00, THEN odds (30%) favor a retest of PDL (1981.25)…Violation of this level projects extreme low of 1970.00.
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 of 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!
Good Trading…David
Habitude Eight
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.