Here you will find the most recent trade levels released today in the Market Dimensions Advisory. This update is showcasing an MDA SnapShot levels with potential buy and sell zones for you to consider executing on the day. If you would like to further discuss these trades do not hesitate to contact me directly. If you are not getting these updates sent to your inbox each morning, please subscribe HERE. To see all MDA updates (morning & intra-day levels, trade recaps, educational material) visit my blog page HERE.
Published 4/19/16 8:18 am central:
We saw price move higher in the overnight and early morning hours. This was off strong bullish activity overseas. We are also seeing Oil push back above $40 and completely wipe out all the losses from Sunday evenings gap open lower. Quite the opposite of what many experts were thinking. We can question and speculate why and argue about it but you have to respect it. The ES made a high @ 2098.50 which is just above the weekly TOP zone and just under the 2100 level. The S&P has not seen these prices since August, then October and finally November of last year and we didn’t spend much time at them before we saw strong sell-offs. I think many people are speculating that we could potentially do the same thing. That this is an overbought market at the moment and a retracement is looming. Right now, based on Market Action Scanner we have to respect that we have strong bullish technical support and have had an uptrend from early February, so this could be the time that we test and break through and continue the grind higher. If we do get many weak shorts who are just playing the 2100 print, it may work for initially but if we grind higher we could see them squeezed out and we challenge 2010 and then 2020. Hard to tell at this point but looking at a daily continuous chart of the ES those are levels we have traded in the past that could see resistance.
Looking at the SnapShot chart today, we have a very tight zone with breakout buys right under the highs, which are most recent highs in the past 5-6 months and underneath the psychological 2100. So if you are playing this level keep that in context. Similar to the sell zone, you are going against a strong bullish market so if we do break lower consider partial profits and that high volume area. Also, if you are getting short and it just seems like buying pressure is coming in and is not budging, do not be afraid to scratch partial positions or exit the trade if it doesn’t seem like its working. Also, this preserves your emotional capital. On the chart, I highlighted the previous zone that I believe bears need to break to get some momentum going. Short term we could play the sell zone but keep in mind that bulls are in control so do not be afraid to exit and look to reverse if a wave of new session lows appears.
we will look to see where we go after the cash open and what time of volume and order flow appears during the session. This will help paint a better picture of what we may do today or line up some opportunities for us to see where we may go.
Bloomberg: Five Things You Need to Know to Start Your Day
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Market Action Scanner: S&P
30 Min SnapShot Chart: Showing Levels
Economic Calendar: Video on how to access on dt pro: https://vimeo.com/160017837
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