The recent retracement from the key reversal day last week has only measured approximately 33% and has not shown any signs of renewed bullish strength. Perhaps the long holiday weekend had something to due with that…This week should either reinforce the larger bullish case or the potential character change we mentioned on Friday.
In either case, one side will have to reassert itself to get some directional movement. Narrow holiday trade and an inside day keeps us focused on last two-day range parameters.
Initial supply zone is from 1655 – 58. IF penetrated on upside with momentum, THEN 1661 – 1666 zone is targeted. IF the bear case is valid, THEN a violation of 1645.00 pushes price down to prior pivots located at 1633- 1636 zone.
We will remain flexible to either case and defer to Mr. Market for direction. We want what the market wants.
I am ready to trade. My patterns are verified. My homework is complete. My mind is clear. I have rehearsed everything. I am prepared strategically, emotionally, and financially each and every day.