Yesterday we knew there were decent odds (83%) of a rally greater than 10 handles (which occurred during globex +9.75pts). Failure to move above Prior Day High (PDH) at 1638.25 setup a very nice “short sell” condition during the Open Range as price could not even hold the OR Average. Sellers were aggressive right from the opening bell and continued all day. NYSE AD Line was minus 5:1 throughout the session and TICKS decidedly bearish all day. Critical support was at PDL 1621.50…Once that broke, accelerated liquidation took hold and price projections cited in yesterday’s strategy targeted 1610 handle…exactly where price settled.

Thursday’s trade action could be a bit more difficult to call, since Contract Rollover will have a large influence on price action. Having closed on the lows, momentum may take price lower before any rally attempt…Key level to be watching is the 6/8 low at 1596.00. On the upside, 1621 – 26 becomes key retracement supply zone.

Good Trading…David

Habitude One:
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.