Short-Term Traders had high expectations that the April 4th high would be penetrated, setting up for an potential explosive move to 1900…BUT  the “Other Time-Frame” (OTF) Trader did not play ball, as  “Buyers Fizzled and Prices Drizzled” lower in a “Failed-Auction.”

We noted in yesterday’s DTS that 3-Day Cycle Targets had been reached, with 1898.50 now becoming the key short-term high “marker”. The failed-auction on Wednesday reinforces this short-term high level. Price is now below the Three-Day Central Pivot Zone (1889 – 1891) which now becomes initial retracement resistance.

IF the Prior Day Low (1882.25) is violated and converts, THEN downside price targets measure…1879.50 – 1878.50 zone, followed by 1874.25 – 1875.50 zone. Below these zones all hell breaks loose with extremes 1873.25 – 1871.25.

Trade Strategy increases favorably of shorting on bounces to key retracement levels until the Bulls regain control. Keep in mind options expiration this week and as noted in prior post that…“recent statistical performance during expiry week has been mixed, so hold on to your hats, as the wind may blow in many directions.”

Remain Focused….Follow the Rules…ALWAYS USE STOPS!

Good Trading…David

Habitude Five
I think in terms of probabilities. I do not know, all I have are probabilities. Probabilities are at the core of my decisions. Through consistent application of the probabilities, I will win.