Trade Strategy for 5.20.13 Remaining Vigilant for a Pullback in Averages

Good Morning…Though Markets have had a historic asent, we must remain vigilant for a pullback…Friday’s action may have squeezed some of the most stubborn Bears into covering…If that’s the case, then we must be careful on any downside momentum development, as who will be left to buy…more Bulls? That said…IF prior day high (PDH) does NOT get taken out, there is a 73% chance of a pullback greater than 10 handles with an Average Decline of 12.75 pts which would bring price back to 1657 handle…into the CPZ…IF that does occur and momentum remains strong, THEN the 3D CPZ 1653 – 55 Zone would be targeted….On the flip-side…IF PDH is taken out, THEN upside price projects to 1673 handle…Friday marked the end day of 3 day Cycle, so today actually favors a pullback in the averages….Remain vigilant and flexible….

Good Trading…David

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