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The March Nasdaq 100 contract has fired 2 Day ROC Sell, 90-10 Low Continuation & Reversal, and Momentum Pinball Buy 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 Momentum Pinball Buy signal suggests that IF the first hour's high happens to be broken, the market is telling us something completely different than originally assessed, and we'd want to consider a long position. Cycle Indicators (chart at right) are mixed, but the larger trend is to higher prices. Odds favor continued downside in today's early trading. Look for an opportunity to sell the break of yesterday's 2709.00 low or even earlier if price demonstrates weakness below the 2726.50 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 2686.50 or the Extended Low Range Projection level of 2667.25 would be likely areas for such a reversal to take place, as would a test and failure of yesterday's low. The Momentum Pinball Buy signal tells us to assume an upside bias if the first hour high happens to be taken out.
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