Narrow Range Consolidation

The S&P notched yet another 30 handle “up sequence” past few sessions with a narrow range consolidation period yesterday with a Hi-Lo Range of just 6.75 handles…That is 7.50 handles below 5 day average of 14.25. Simply, the market is going through the normal process of expansion and contraction, albeit with an upward bias skew.

Having reached 3-Day Cycle Targets outlined in yesterday’s DTS…IF price converts PDH (1893.25), THEN upside targets 1897 – 1899.25 zone…”  We will mark 1898.50 as near-term important high as buyers failed to auction beyond this level. It would take increased buying on above average volume to propel price to the 1903 – 05 upper target zone.

Failure to convert PDH suggests some “backing n filling” necessary to consolidate recent gains. Retracement off the recent high targets 1891.00…1887.50…1884.25. (3DCPZ).

Average Daily Ranges ADR (5)

ES – 14.25    NQ – 39    YM – 85    TF – 18.30

Prepare for Anything…Trade the Probabilities….ALWAYS USE STOPS!

Good Trading…David

Habitude Four
I am at ease with controlled risk. I will risk and I will win. I am courageous. I will take a chance. I manage risk to my comfort level. Risk keeps me on my toes, keeps me alert and at the top of my game.

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