Following a heavy week of selling, purveyors of Market Symmetry will be keying off the Overnight Low Zone 1803 – 1805 for support. This zone forms a very nice symmetrical AB=CD Pattern measured from 4/4 high down to 4/14 low.

This week is shortened trade with Passover and Easter, so most business will take place early in the week with progressively lighter trade volumes. Earning season is also upon us, hence, money managers will be looking for clues in those reports to support their current holdings.

IF overnight lows hold, THEN a relief rally can play out potentially pushing prices initially to 1818 – 1820 zone, which represents High Volume Node (HVN) from prior session. Further strength above this zone targets 1822 – 1824 zone. Statistical extreme measure 1829 – 1832 zone.

IF price cannot hold session low on any retest calls for deeper liquidation measuring 1800 – 1796…1792.

Probabilities favor a relief type bounce working off some of the excess selling, followed by more consolidation type action. We will remain very flexible and opportunistic to trade on both sides at key inflection levels.

Stay Nimble…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.