Good Morning Traders!
OPTIONS EXPIRATION…”quadruple witching”….
SPs had a morning dip down to form a bull flag before retesting back up. 1952.50 will be a full retest up – This will be Friday’s main upside pivot.
Friday tends to be the narrowest range of the week….hard to imagine much smaller range than Thursday’s NR7 – just over 8 point range. The VIX reflects this accordingly. Main roadmap higher time frame remains the Russell on the daily charts. No indicators have hit overbought levels yet. However, after 5 up days in a row, the SPs may need to consolidate to the hourly EMA first before looking for much more upside.
Buy pullbacks on metals – after trend day UP, the first reaction down will be a grail buy. Copper – just breaking out to the upside end of THursday’s session. Crude still doing price equals time consolidation but the flag suggests eventual full retest up. Nice move on grains end of day – now is Sell Short day scalp only. Corn made new 2-period ROC highs and Beans had range expansion up.
Most markets have had such extreme movement this week, there might be good two way scalping in most markets as they consolidate their recent gains.
have a fabulous weekend everyone! Remember, trading is all about the PROCESS so you are ready and in right spot at right time. a discretionary approach to trading can still be systematic! My motto for now!