Homework and Trade Sheet for May 7

Volume on Friday’s rally was light and volume on Monday’s recovery was even lighter.  The market is in a down seasonal period for the next 6 weeks which implies headwinds increase. The closing Tick indicator is on a Sell.  The short term summation tick index hit overbought levels.

The market has entered a trading range phase.  The best example of this is how the Nazdaq is forming price bar overlap after a large STD extended run.  Typically, consolidation can last a minimum of 10 days following the end of an extended run. Often, false breakouts to the upside and downside can lead to trading opportunities.  initial support for the Naz comes in around 7547. 2865 is the comparable downside pivot for the SPs.

EC – Three bar triangle BO