Mid Day Range #spx

17 мая 2019 г.

We saw the bulls defend the early selling and now the bears are trying to defend yesterday's highs. Again, we could go either ways and it would make sense. What do you do when there are 50/50 odds for direction? Wait and watch! You don't have to be in a trade every day (unless you are a day trader) There is a reason why casinos give away the house to winners. They want them back because they know the odds are on their side the more times someone is there betting. The same holds true for the stock market. If you feel you have to be a trade every day, the odds increase that you will be wrong. Wait until you have a high odds trade set up in either direction and then make a trade.

The bulls have to push above yesterday's highs to break out of the neckline of the inverted head/shoulders pattern. If the bears win and take out today's lows, then more work is needed to form the right shoulder-if this pattern is in play. Next week we head into memorial day weekend. History has shown us that the bulls like to work during holiday weeks. Volume typically lightens up and they usually do a lot of the work in overnight trading. I am NOT saying this will be the case, but something to think about. The "Kill Zone" crash time period is approaching quickly-stay tuned and be ready-if it turns into a black hole-we could see 200-400 spx points down in a very fast manner! G