This commentary will focus on the first 60-90 minutes after the Opening Bell. However, our strategies can and will provide setups the entire trading day.
Overnight price action showed minor weakness after the markets were choppy yesterday with back and forth price action moves. After the late session rally yesterday, overnight price action rolled over with weakness and began trending lower.
We have several days of overlapping price action with similar patterns in price action in the morning session. Price action moves initially in one direction and for a few minutes and reverses in the opposite direction almost like clockwork within the first hour.
From a birds-eye view, price action has been range-bound for 4+ consecutive days with very aggressive mini market cycles. Economic news in pre-market has not significant moved price action, and there is minimal additional economic news in the morning session to be concerned about.
With price action inside the prior day’s range and inside the multiple day consolidation area, we will watch the markets with caution until we see more evidence of swing pivots being tested.
Pre-market price action very calm in the middle of the prior days intraday hotzone.trying to move higher with higher swing pivots and forming a nice retracement and flag pattern heading into the opening bell. Minor Economic news and events to focus on this morning, but will start to see more earnings releases impacting stocks and sectors.
In pre-market, the 5-minute chart is showing very minor high highs and higher lows.
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Took a SHORT position once price action showed great evidence with lower highs and lower lows on the 1-minute chart. Price action continued with strong momentum lower…we took 3.0 point profit.
Note: There were several aggressive SHORT setups for advanced traders to take in the mini market cycle downtrend.