The daily chart shows price yesterday making a
slightly higher high but slightly lower close versus Monday's candle. Price
today opened below its daily pivot but has thus far made a higher high as price
continues to ride MD MA support. This is behavior indicative of price being on
the upside of the multi-week cycle. I have marked last week's anemic dip as a
MW high and immediate MW low, so price can easily March higher until the next
projected MW high on 11/4. Given the overdue nature of the multi-month cycle,
it is possible that we could see a half-span shift of the MW cycle meaning an
earlier MW high arriving early next week, but in any case the path of least
resistance continues to the upside. Nobody should consider shorting this market; quite the opposite, any dip
into a MW and/or MM low should be used to get long.
The hourly chart shows price yesterday continuing
to chop above and below the daily pivot/24Hr MA. The 24Hr highs and lows are
coming in at much shorter than normal intervals, and the 24Hr MA has been unable
to pull away from the daily pivot for three days now (something I can't
remember seeing before). This is all abnormal behavior and I can only
imagine that it is due to smaller timeframe cycles trying to roll over into
their troughs but being streamrolled by the powerful tsunami of longer timeframe cycles that are
still moving hard up.
It is unclear where we are in the daily cycle; it
is possible that another early 24Hr high was seen overnight followed by another
early 24Hr low made on daily pivot/24Hr MA support. It is also possible that
those highs and lows were only a Session high and low and price will take
out the overnight high around the time of the NY open. Truthfully, it is
irrelevant which scenario is correct; there is currently no persistent
periodicity to the daily cycle; and without this there can be no
predictability. Without predictability, there is no edge, and without an edge
there should be no trading. Just like yesterday, I will avoid daytrading
today.
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