Mid-Day Update

The bears pressed hard from the open and took us right down to the range bottom. As we approached the bottom, price started wedging into the low which usually precedes a reversal. And this is right where we expected one to occur.

This was followed by two bull surprise bars that must have knocked the bears for a loop. The second bar found resistance at the hourly 21 and generated a Micro Double Top Pivot Sell.

From there, price wedged into a retest of the Algo Trigger Line and 5-Min 21. Significantly, traders were not able to drive the price into a retest of the morning low. We had a pivot buy from that level confirmed by large bull bars driving right through all of the resistance identified this morning. That resulted in a sell as the price wedged into the measured move of the first leg.

At this writing, another pivot buy has developed from the Daily Algo trigger with a target of the August open at 4408.50 and the opening range breach target is right above that at 4415 or so. Energy and Financials are in the top of the leadership group so we appear to have passed the risk period thus far. Now we need to see if the top of the range can be broken. Trading ranges tend to persist and feed off each other so only time will tell.

A.F. Thornton