Critical Test of High

S&P e-mini pulled back to key weekly Point of Control (1958 handle) yesterday where responsive buyers stepped-in, absorbing all contracts supplied. We continue to observe repeated pattern of pullbacks testing support zones, then price pushing back higher to top end of range…Short-term, Intermediate and Long-Term trends are all back in bullish alignment.

Overnight trade has ES +6.00, YM +30.00, NQ +15.00 and TF +2.40 as of 8 am.

Let’s look at today’s hypotheses:

Scenario 1: Price is within a whisker of Prior Day High (1976.25)…IF this level is penetrated and converted, THEN odds favor a 60% chance of hitting upper price target 1978 – 1980.50 zone. Above the all-time high pushes extremes 1985, 1987.75 – 1990 STATX-Zone.

Scenario 2: Failure to convert PDH (1976.25) calls for further “back n fill” within recent range. Initial support is marked 1970 – 72 zone, followed by 1966 – 68 zone. IF these zones are violated, THEN 1962 handle becomes Key Decision Point (DP) Support.

Trade Strategy: Today is Cycle Day 3, so as long as price can stay firmly above 1962 handle, price will have notched a “positive cycle”. As such, we will continue to trade in alignment with dominant force, currently bull, on pullbacks to key Decision Point (DP) zones. This does not preclude us from selectively fading (shorting) upper auction failures…We Remain Flexible!

Trade What You Know…Verify What You See   ALWAYS USE STOPS!

Good Trading…David

Habitude Eleven
I am courageous and I always act, even in the face of uncertainty and possible loss. Do not say, no fear. Feel the fear and act anyway. I may be frightened, but I still saddle up. I am not reckless. I act promptly in accordance with my methodology. I respect my calculations. I have a healthy respect and I balance that respect with my courage. I am an explorer. I am on a hero’s journey.


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