Short-term Levels

Time has certainly been at a premium as of late - and unfortunately, updating this blog hasn't exactly been the highest priority.  In light of this, I'll share some prep that should stay relevant for a little while.  Hopefully I'll be able to update the blog more often the coming weeks, but for now here are some things I've been looking at:

Longer-term view on the daily chart...

On Feb 2 the market looked underneath the intermediate-term range, attempting to break significantly to the downside and accelerate to a new price area where a new trading range could develop.   Unfortunately, the breakdown miserably failed with eager hands scooping up the market while it was on sale, stopping the fall and reversing the day entirely.  Since then, one-timeframing has been occuring, with the most recent trading day attempting to breakout to the upside.  Unlike the breakdown on the 2nd, there wasn't a small army of traders waiting to greet the market's probe out of balance.  Yet it still couldn't accelerate.  After looking above the 61 price level (the intermediate-term range's ceiling) and finding the no-one-wants-to-buy-but-no-one-wants-to-sell-either game in play again, the market strangely, suddenly took a dive, almost taking out the previous day's low, which would stop the one-timeframing and increase the probabilities for a reversal in short-term trend.

On the chart above are marked the most important references going forward.  For Monday, the first order of business is to see if 1) 1-timeframing will stop, followed by 2) lower value vs Friday.  Value will confirm if change has taken place.  If the market can auction back down, we're looking at a likely gap fill destination at 18, which is about half-back the overall range.

If no reversal is found, look for the usual crapgrind to resume with the previous life high as the target, since there was no good hard pushback at that level when it was established over a month ago.  Then, look for 2100 as the psychological target after that - a level that's been discussed for a very long time.

See you in the market!