Extremes and Reversal

Yesterday’s DTS stated: Failure to hold support on any retest with increasing selling suggests a reassessment of bullish resolve; Violation of key support targets 1856.” 

Key support zone was 1859 – 62 which was violated forcing aggressive selling and stop run pushing price to our lower extreme level near 1856 before reversing sharply higher. We have been discussing in the trading room about how the algos have been pushing prices to extremes more frequently, frustrating even the most seasoned trader. This activity is expected to continue as long as the “robots” continue to dominate the trading landscape.

“Forewarned is forearmed”…It’s a critical survival skill in today’s trading environment to know where “key price zones” (statistical extremes) are located, so as to give a “trading edge”. The PTG levels such as TargetMaster / STAT-X Zones identify these key price zones from which to consider trade opportunities.

Price has rallied back to the YELL 1873.25, but has yet failed to convert, currently sitting on this level as of this writing (7:45 am). Failure to convert calls for continued weakness as May is a critical month…”Sell in May and Go Away” could certainly be the “call-to-arms”.

Initial support resides 1869 – 71 zone (3D CPZ), followed by 1862 – 66 zone. Below this level and there is not much until 1856 – 59 Bull/Bear Line in Sand.

Remain Focused…ALWAYS USE STOPS!

Good Trading…David

Habitude Twelve
I am disciplined. I behave in a way to reach my goals. I do what I intend to do. I have the intent to win through right actions. I will be patient for patterns to emerge and mature. I am decisive. I decide easily and act promptly. I act in the right way and right on time. When there is nothing to be done, I will wait.

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