Pre-Market Outlook -6/8/2021

Murphy’s law, I decided to venture out a bit today, so here I sit harborside at a Cafe in Sami, Kefolonia, Greece sipping a frosty Mythos. I am doing the outlook from my phone – so there are a few limitations.

Naturally, here comes the liquidation break I have been harping about for days. So there will be a true gap down at the open, and gap rules apply (bluprintquantitative.tempurl.host/glossary/gap). Inventory is net short so an initial gap fade is possible.

A potential cycle top looms, and this could finally be it. Absent that, a trading range or wider bull channel is the most likely outcome of the daily chart micro bull channel morphing on us – so don’t get too bearish too quick. It will not be unlike yesterday’s 5-min chart that morphed into a trading range, but now the same will happen on the daily time frame.

You know all your levels below here. Keep the daily 21 and 50 in mind as pivot points.

You will find the gap rules here. Remember that large gaps tend to stall and move sideways the rest of the day. Ideally, we will retest the breakout from the three-month trading range around 4250 or so. I will be tempted to do a swing trade there.

I am not trading today, but will still post the possible trades in the Epilogue later tonight. 

Be careful today, it has the potential to get wild. 

A.F. Thornton