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The March Feeder Cattle contract has fired 2 Day ROC Sell, 90-10 Low Continuation & Reversal, and High Breakout Continuation Setup signals for today's trading. The 2 Day ROC Sell signal implies that today's principal trade direction should be to the downside. The 90-10 Low Continuation & Reversal signal tells us to look for morning follow through on the weak close, but to expect a likely reversal once the initial move has bottomed. The High Breakout Continuation Setup signal implies significant upside IF yesterday's high happens to be taken out. Cycle Indicators (chart at right) have moved into a region where short term cyclical lows often form, but the more immediate trend is to lower prices. Odds favor further downside in today's early trading. Look for an opportunity to sell the break of yesterday's 153.600 low, or even earlier if price demonstrates weakness below the 154.175 level of the Daily Pivot. But stand prepared to exit or even reverse if we get appropriate price reversal patterns and/or Oscillator Divergence near important support levels. Our Normal Low Range Projection level of 152.950 or the Extended Low Range Projection level of 152.350 would be likely areas for such a reversal to take place, as would a test and failure of yesterday's low.
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