Positive 3-Day Cycle

Another Positive 3-Day Cycle as S&P hit projected initial cycle target 1939.50 early followed by some back n fill consolidation throughout the session, with final push at settlement to hit the upper cycle target of 1945.75. The three-day cycle sequence has been spot on, offering astute, informed traders fantastic trading opportunities, whether a day-trader or swing-trader…So let’s continue to enjoy and profit.

Residual bullish momentum has price trading near Cycle Expansion Targets between 1946.75 – 1950.25 in early morning trade as of 8 am. Having reached and exceeded this current cycle ranges, we would be a bit more cautious on long-sided trade today, but will remain flexible and open to all valid trade opportunities.

Average Range on CD3 = 17.75; Max Range on CD3 = 21.25; Odds of Rally > 10 = 82%; Odds of Rally > 20 = 54%

***Note: The odds highlighted are not predictions, rather a guide based upon historical observed occurrences.

Today Hypotheses:

Scenario 1: Price is currently above Prior Day High (1945.25) in early trade…IF price can hold above this level during pit session, THEN there is a 55% chance of reaching upper Xtreme Targets between 1950.25 – 1953.00.

Scenario 2: Having reached initial cycle expansion target of 1948.75, there is now an increased chance of a more meaningful sell response and potential reversal lower. IF price violates the PDH (1945.25), THEN stronger selling may develop…Lower levels to be mindful of are 1942.00 for initial support, followed by 1938 handle, which is prior day VTMP. Violation of this key marker targets the 3D CPZ between 1934.00 – 1936.00.

Trade Strategy: We will be “cautious bulls” to ride current momentum, but remain flexible and open to short-side trade opportunities since price has reached cycle expansion targets with an increased chance of a stronger sell response. BE FLEXIBLE…TAKE THE TRADE! 

Follow the Trade Rules….ALWAYS USE STOPS!

Good Trading…David

Habitude Eight
I can recover from any setback. I have an attitude of abundance. I affirm abundance in the universe. I know I cannot begin to count the stars. I realize the ocean doesn’t care whether I go to it with a bucket or a teaspoon. I know the market provides a river of opportunities. I invest in my capabilities. I will be happy with my results.


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