In Friday’s DTS we noted that the prior session’s high… “may in-fact mark a key short-term high point within this current swing up, as it also marks an important Fibonacci 55 day expansion from February 5th low.”…and that…“failure to hold 1864 on pullback could potentially force long liquidation targeting 1861 handle down to 1855 – 53 zone.”
The projected low of 1853.00 hit to-the-tick in Friday’s session, marking key short-term retracement low. Currently the recent two-day selling-spree is only classified as pullback within larger uptrend, though a more important sentiment shift may be developing. April marks the end of the historically strongest six-month period in the stock market, so could the “Sell in May…and Go Away” play out on cue? IF the 1853.00 low marker is violated, THEN probabilities increase for lower prices…maybe not today..but be watchful of that level.
Overnight trade has price in a corrective up bounce condition…Key overhead resistance zone is the 3D CPZ between 1868.25 – 1871.50. Above that zone is 1872.75 – 1875 for stronger resistance. Those levels need to be penetrated and converted to change the current pullback dynamics. On the lower side, there is not much in the way of real support zones until much lower (1850 – 1852), followed by 1842.60 – 1846. So the downside appears more vulnerable to a renewed onslaught of aggressive selling.
Trade Strategy as laid out in prior posting remains valid…“now favors “selling the rallies” until bulls can reaffirm their dominance.”
Stay Disciplined….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.