Current 3-Day Cycle has been weaker than past cycles…This may be a “tell” for further price weakness…Nasdaq has fared better on a relative basis, so we will need to monitor closely the price action there since it is 20% of the S&P index. The current “bull/bear” line is sand is 2100 handle…Bulls will need to clear and convert to improve conditions…Currently bears have a slight edge.
Today is Cycle Day 3 (CD3)…As mentioned above, this cycle is weaker than norm, but do not rule out a rally, since bulls have responded on every price dip…We will play it as we always have…Staying in alignment with intra-day dominant force.
Odds of 3D Rally > 10 = 82%; Odds of 3D Rally > 20 = 54%; Average Range = 17.75; Max Average Range = 21.50; Possible HOD = 2103.50 based upon average range; Possible LOD = 2071 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: IF price can clear and convert 2093.25, THEN initial upside targets 2097, followed by 2100.00. Price strength above this level target 2103.50 (avg range), with 2106.75 TargetMaster Breakout Level. Expansionary targets measure 2110.50 – 2114.50.
Scenario 2: Failure to convert 2093.75 and subsequent violation of 2087.25 opens door to deeper downside targeting 2083.50 – 2080.50 STAT X Zone. Below this zone expands 2077.50 TargetMaster Breakdown Level…2072 – 2071 CD3 Low Violation Target 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