Market’s overnight are relatively quiet with a slight upward bias ahead of new Fed Chair, Janet Yellen’s semi-annual testimony to the House Financial Service Committee. Policy changes seem unlikely, though market watchers will be looking for any hint of change in position.

Yesterday’s trade strategy suggested that if 1794 was penetrated then upper targets are 1800 – 1805 within the StatX Zone. That target zone was finally reached during the overnight session. We postured whether OTF trader will step-in and buy near 1800 or will they view this zone as a better sell…That question remains unanswered as volumes were below average in prior session…Today may shed some additional light on Big Money intentions.

Today is Cycle Day 1 which historically has an average range of 18.75 handles with a weak trade bias. We must always respect the immediate trade direction as it unfolds, though new long-trade risk remains elevated at current prices.

Target resistance (1800 – 1805) has been achieved, so any renewed selling can reverse price sharply. As such, initial trade strategy today begins as cautious long looking for reversal signals. IF price fails to convert overnight high (ONH) THEN shorts can be initiated with lower targets ranging down to 1790 – 93 zone. Failure of a buy response at this zone warrants retest of prior lows 1786 – 88.

Good Trading,

David

Habitude Two
I am detached from the results. I think in terms of the process and the validity of the process. I understand that I am more than the trading. I do not tie a fragile ego to any day’s trading results. I have faith that over time I will make money. The results of any one trade are statistically unimportant. I think in term of probability. A single trade says nothing about me as a person.