In Tuesday’s Blog we posted: “Failure to exceed 1880 suggests more consolidation within current range. Violation of 1869.00 and lower conversion suggests weak buying interest and projects 1858 – 62 zone for next buy response.”

Early session failure that occurred within the STATX-Zone (1880 – 1881.50) setup a textbook price reversal driving prices down to key support 1868 – 70 zone. Violation of that zone as highlighted in yesterday’s blog posting suggested that Bulls had no further appetite to buy, hence emboldening the Bears to press prices lower.

Violation of the 1869.25 level yesterday targeted 1858 – 62 zone for “next buy response”. Early morning trade has price sitting squarely within this projected target zone, where we anticipate some renewed buying interest from the Bull camp. One “key metric” we measure is the 5 day average Value Area Low which currently is 1857.25. This will be a critical test of bulls resolve to continue to buy the pullbacks.

Trade Strategy: We will be looking for the noted buy response from the “BIGS” within key reference zones to establish longs. Immediate momentum trend is down, so we’ll be opportunistic sellers on failed rallies. Dynamic intra-day S&R Levels will continually be updated throughout the Session for Members.

Remain Flexible and ALWAYS USE STOPS!

Good Trading,

David

Habitude Nine
I will identify my mistakes and learn from them. I am optimistic, realistic and honest. I will not make up stories about the good or bad things that occurred in the past or are happening now. I admit when something is not working. My optimism gives me faith and courage. I will not fall prey to blame and fear.