Be Patient and Wait for a Break of the Range

I know it's boring, but it's the best course of action right now.

Technical Edge — 

• NYSE Breadth: 63% Upside Volume

• NASDAQ Breadth: 53% Upside Volume

• VIX: ~$26

Sometimes the best trade you can make is protecting your capital. 

We really need to keep an eye on the weekly ranges. A break of last week’s range that doesn’t reverse (i.e. not just a crack or “look below” last week’s low or “look above” last week’s high) could accelerate the move. 

Meaning a weekly down rotation could really get the selling starting and a weekly-up rotation — now 118 handles from current levels — could rejuvenate the rally. 

Separately, our US dollar trade is trying to gain some steam. Let’s keep an eye on that today and tomorrow.

Game Plan — S&P 500 (ES), Nasdaq (NQ), Bitcoin, AAPL, DLTR

S&P 500 — ES

ES — again, boring. I know. But it’s the same setup as Monday, only now we’re trading down into the 10-ema on the daily. 

If it loses last week’s low at 4071.50, then it opens the door down the 21-day moving average, then the 50% retrace. 

Above the Globex high of 4124 and perhaps the ES can make a charge at Monday’s high up at ~4168. 

For SPY, watch the weekly range from Monday’s plan. 

Nasdaq — NQ

Same setup as the ES. The only difference is the prices. Weekly down below 12,440 opens the door down to the 12,220 to 12,250 zone, where the NQ finds its 21-day moving averages and the 50% retracement. 

Over the Globex high of 12,615 and the NQ can push higher, perhaps to the 12,750 to 12,800 area. 

Bitcoin