Global instability…Mixed Corporate Earnings…has kept investors/traders on the sidelines while the algorithms push price upwards and downwards intra-day creating consternation and concern about the markets next direction. Until price clears 2110 handle on upside, it’s more of the same multi-week range bound trade.
As stated in prior DTS Briefing 04.21.15 Cycle Target 2105 has been achieved and as such, has fulfilled this cycle’s objective. Failing to expand beyond this level now has price retreating downward to probe for new buy response. Key zone for potential support is between 2080 – 2085…Upside resistance is now marked between 2094 – 2098 zone.
Today is Cycle Day 3 (CD3)…Cycle objectives have been fulfilled increasing odds of decline beginning to probe for new secure low.
Odds of 3D Rally > 10 = 82% (achieved); Odds of 3D Rally > 20 = 53% (achieved); Average Range on CD3 = 17.75; Max Average Range = 21.50; Possible High = 2113 based upon average penetration of CD2 high; Possible Low = 2073.50 based upon average violation of CD2 low.
***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: June (M) Contract
Scenario 1: Price is lower in overnight trade…Holding above CD1 Low is critical for bullish case. IF Price can hold above 2078.50, THEN odds favor recovery back to 2094 – 98 zone. Clearing and converting this zone suggests bulls have regained control, then targeting retest of PH 2105.25. Above this level range expansion can occur targeting 2108.50, then 2113.00.
Scenario 2: Price is lower in overnight trade…Continued weakness to probe for new secure low between 2080 – 2085 is expected. Violation of this zone warrants deeper downside action targeting 2078.50, then 2075.50 – 2073.50 Zone.
Trade Strategy: Our tactical trade strategy will simply remain unaltered…We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus on Bull/Bear Stackers and Premium/Discounts. As always, remaining in alignment with dominant intra-day force increases probabilities of producing winning trades.
Stay Focused…Non-Biased…Disciplined ALWAYS USE STOPS!
Good Trading…David
“Knowing is not enough, We must APPLY. Willing is not enough, We must DO. – Bruce Lee