The daily chart shows price yesterday making a
lower high, lower low, but higher close versus Wednesday's candle, with price
again finding soft support on the weekly pivot and MD MA. Price thus far today
has had an inside day and is trading little-changed from yesterday's close.
The consolidation pattern continues to unfold in
the market, once again making cycle peaks and troughs difficult to discern as
price whipsaws through moving averages and pivots. As mentioned yesterday,
there are many possible scenarios that would explain why price is behaving as it
is -some of these scenarios are bullish but more are bearish. Thus, unless
price offers more proof to one of the bullish scenarios, it makes no sense to be
long as this pattern unfolds.
The hourly chart shows price yesterday making an
early 24Hr low near the weekly pivot, a possibility that was mentioned in
yesterday's commentary. Price rebounded to make what appears to have been an
extremely early 24Hr high yesterday afternoon, followed by a lower Session high
in overnight trading. We are in the timeframe to see a 24Hr low being made,
and price appears to be finding support at the 1940 area, just above the weekly
pivot. Should price trade above the Session MA and turn that average upward, it
would indicate that the 24Hr low has been seen and price should trade higher for
the day. Given that the consolidation pattern which has affected the longer
timeframe cycles appears to now be impacting the 24Hr cycle as well, I am more
hesitant than normal to daytrade on the upside of this 24Hr cycle.
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