Quiet Consolidation High

Markets continue to trade below average volume and range in a quiet type back n fill consolidation pattern. Buyers are beginning to find ample supply (sellers) above the 1950 handle as price was not able to make further upside advances. Now it may be much too early to be calling for a final high, but if supply continues to build and satisfy the buyers, price supply/demand equation may soon hit a tipping point…Stay Alert during Summertime…As Mr. Market tends to make swift and abrupt changes just when everyone is lulled into complacency.

Price failed to exceed yesterday’s Open Range Rotation Average (1954.50) and Key Over/Under Level (1956), so that zone now becomes “Key Resistance Marker”.

Scenario 1: IF price can stage a strong enough rally to exceed “key resistance marker” zone, THEN upside price projects 1958 – 1960 zone. Beyond this zone pushes to 1965 – 1968.

Scenario 2: Failure to penetrate and convert “key resistance marker” suggests further consolidation is required to find responsive buyers. Lower levels of potential support are 1945 – 1948 zone. Lack of a buy response at this level, then sellers would need to probe even lower levels such as 1938 – 1940 zone.

Trade Strategy: As stated in prior DTS, we are “becoming more concerned” that a more important price correction may be developing, and we want to stay on alert…As such, our tactical trade strategy will be to play more aggressively on the short-side until “key resistance marker” is penetrated. This does not preclude buying off of key support zones with proper setups..as we will remain flexible to seek out two-sided trade opportunities.

Focus on the Trading Process…Not the Outcome  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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