BIG Test of April 4th High

The S&P’s Opening Gap pushed price higher in Monday’s session, with trend-day short covering characteristics, reaching our price targets of 1891 – 93 zone. Now comes the BIG TEST of the April 4th High and a probe for “buy-stops”. Will this test be a “break-out” or a “fake-out”? This week is also options expiration week…recent statistical performance during expiry week has been mixed, so hold on to your hats, as the wind may blow in many directions.

Path of least resistance is currently up, having exceeded the key marker zone between 1880 and 1885, which has proven difficult to penetrate for the past two weeks. Price has now successfully cleared this zone, so giving benefit to the bullish case, we will be looking for opportunities to enter long-side on pullbacks until key structural pivots are violated.

Prior day’s Value Zone (1886 – 1893) with VPOC  1889.00…Any retracement back into value we will be looking for a good price location for long. IF price converts PDH (1893.25), THEN upside targets 1897 – 1899.25 zone, followed by 1900 – 1902 zone.

Remain Focused…Follow the Rules…


Good Trading…David

Habitude Three
I am willing to accept loss. Losing is an integral part of the process. I know and accept that individual losses and losing periods will happen. They are endemic to trading. I do not like loss. I do not expect loss. I simply accept loss as a cost of doing business.

Leave a Reply