Navigator™ Signals for Day Traders Morning Outlook – April 5, 2021 by AF Thornton Apr 5, 2021 0 Comment We have the S&P 500 Index achieving new high territory again this morning, having decisively cleared the elusive 4000 mark, with the NASDAQ 100 clearing the resistance between the index and the old high. Both indices will gap open as true gaps, so gap rules apply this morning. We will have Treasury Secretary Yellen sounding off on the new infrastructure bill and proposal later this morning – certain to bring a bit of volatility to the table. As with all true gaps, the early fade potential is present, especially on large gaps such as those presenting this morning. Whether you trade them or not, use the gap to your advantage to glean the market-generated information that will be revealed by what the indices do or don’t do in early trade. For example, Is the fade fully to last Thursday’s high? Is the fade partial to about halfway? Is the fade barely perceptible with almost no countertrend activity? Each of these outcomes tells us a lot about each index’s strength and how we should interact with it.Assume strength above the overnight high at 4038 on the S&P 500 index as there is no technical resistance. Monitor for continuation.As per Gap Rule #4, don’t discount the potential for the futures market to trade sideways for the duration of the session. This is common on large gaps, and traders should look to individual equities for higher odds intraday plays rather than futures.As you know, I rarely trade Mondays, and that goes double for Mondays after a three-day weekend. Over the past 34 years, I have learned that traders and even institutions sometimes do weird things after a few days to breathe and reconsider their positions. I like to have that out of the way and prefer to trade beginning on Tuesdays.The expected move this week for the NASDAQ 100 is 303 points – ranging from 13031 to 13638. For the S&P 500, it is 47 points – ranging from 3972 to 4067. As with most weeks and depending on direction, we will tag one of those levels, and then the market will stall for the rest of the week.A.F. Thornton
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AF Thornton Website: https://tradingarchimedes.com A.F. "Arthur" Thornton is an expert in logic, risk/reward quantification, market fractals, pattern recognition and asset class behavioral analysis with 34 years devoted to developing algorithmic and quantitative trading systems. In addition to trading his own capital, Mr. Thornton designs custom algorithmic and quantitative trading systems for a small and exclusive group of exceptionally qualified traders.