While the Monthly and Weekly Bar show a market 1-timeframing lower, the daily bar has turned back up. Following an Excess Low on Thursday, the market gapped up on Friday and stopped 1-timeframing lower on a daily basis. As I have often said before, Gaps are a form of Excess and frequently the precursor to a more significant, directional auction. An Excess Low (or High) followed by a Gap up is the most potent combination for a reversal - when observing a multiple day auction. Also observe the trend line on both the Monthly and Weekly Bar below.
I wrote in my last post about the possible destination trade being the 1882 area. That may still be possible - only if we stay below the 1977-1978 area. Acceptance and Closing back above that level confirms the excess low made last week and a trend reversal.
For Monday, my focus will be on the 1958 area. Staying above that level puts us back in a prior 3/4 day balance and targets the naked POC at 1965.75 and poor high at 1978.25 ( also last week's high). Taking out last week's high will be a significant change and turns the intermediate trend up. Above last week's high - we have another poor high at 1992.50. On the flip side, Acceptance back below 1958 area, targets Friday's low and the Gap at 1945.25. And below that the naked POC at 1938.25.
I wrote in my last post about the possible destination trade being the 1882 area. That may still be possible - only if we stay below the 1977-1978 area. Acceptance and Closing back above that level confirms the excess low made last week and a trend reversal.
For Monday, my focus will be on the 1958 area. Staying above that level puts us back in a prior 3/4 day balance and targets the naked POC at 1965.75 and poor high at 1978.25 ( also last week's high). Taking out last week's high will be a significant change and turns the intermediate trend up. Above last week's high - we have another poor high at 1992.50. On the flip side, Acceptance back below 1958 area, targets Friday's low and the Gap at 1945.25. And below that the naked POC at 1938.25.
