if market can't gain a foothold above MPR2 = 107.74, modified TDI will turn at the OB zone and we'll have a potential retrace at least as far as the K-area support (white rectangle) around 105.05-105.28 where bottom of K-area also is the MPR1. of course, right now market still seems bullish. i will be watching for possible spikes into MPR2 and if price fails to take out the level, then initiate a short with TP=K-area. of note, we also have a TL right under K-area and MPR1. usually market touches those, then pauses and either reverses or continues through the levels. bottom line, we are at the cusp of some decent move.
that being said, market might just as well only retrace until 38.2% (yellow line) where another TL is located and resume bull run from there.
proprietary momentum study (blue, green, and red lines) show that blue is under green line now, and this shows a loss of momentum, although all 3 lines are still pointing up, which means that the turn lower has not even started yet.
fuchsia line = 55 SMA; orange line = 100 SMA; teal line = 200 SMA.
forgot to display Bollinger Bands and proprietary bands but if shown, you would see that the upper bands of both are at MPR2 right now (where the lime line is shown), so to go significantly higher, market would need to show a major volatility breakout to the upside. we are talking about deviating from the mean by more than 2 standard deviations. unless there is some sort of exogenous catalyst in the next 24 hours, i do not believe this will occur. regardless, price action needs to be watched closely to see what it does around that level (MPR2); if it shows clearly that it is just trying to grap stops (spike into the level), then i'd sell into the spike. SL placed above WPR1.
that being said, market might just as well only retrace until 38.2% (yellow line) where another TL is located and resume bull run from there.
proprietary momentum study (blue, green, and red lines) show that blue is under green line now, and this shows a loss of momentum, although all 3 lines are still pointing up, which means that the turn lower has not even started yet.
fuchsia line = 55 SMA; orange line = 100 SMA; teal line = 200 SMA.
forgot to display Bollinger Bands and proprietary bands but if shown, you would see that the upper bands of both are at MPR2 right now (where the lime line is shown), so to go significantly higher, market would need to show a major volatility breakout to the upside. we are talking about deviating from the mean by more than 2 standard deviations. unless there is some sort of exogenous catalyst in the next 24 hours, i do not believe this will occur. regardless, price action needs to be watched closely to see what it does around that level (MPR2); if it shows clearly that it is just trying to grap stops (spike into the level), then i'd sell into the spike. SL placed above WPR1.