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The March S&P E-Mini contract has fired Low Historic Volatility with a Wide Range Day, 2 Day ROC Buy, 90-10 High Continuation, and Momentum Pinball Sell signals for today's trading. The Low Historic Volatility with a Wide Range Day signal tells us that the market has been in a period of extreme contraction with a Wide Range Day expansion move to the upside having just occurred. The 2 Day ROC Buy signal implies that today's principal trade direction should be to the upside. The 90-10 High Continuation signal is fired when the day closes within the top 10% of the day's range. It tells us that yesterday's late day move higher is likely to continue on into today. The Momentum Pinball Sell signal suggests that IF the first hour's low happens to be broken, the market is telling us something completely different than originally assessed, and we'd want to consider a short position. Cycle Indicators (chart at right) are moving into a region where short term cyclical tops often form, but both the larger and more immediate trends are to higher prices. Odds favor continued upside in today's early trading. Look for an opportunity to get long on a break of yesterday's 1529.00 high with a stop just below the 1524.00 level of the Daily Pivot. Price strength above the DP may provide clues for earlier entry. The Momentum Pinball Sell signal, on the other hand, suggests we consider the short side if the first hour's low happens to be broken to the downside.
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