Outside Inside range day patterns are one of the better breakout formations. The SP cash closed above the 5 SMA after a downside momentum move, but the futures broke hard on the close to close just below the 5 SMA. Either way, the 5 SMA is analogous to the pit session 120 minute EMA, and this proved to be resistance. The chart below shows the potential of an “equal length” leg to the downside should the lows be taken out (1764). 1773.50 is the high volume node for the previous trading range on the tick charts. Watch to see if the market tests this and how it trades around there.
Do you like the format of the new tradesheet? We always welcome your comments!
Have a great weekend! Linda