Wednesday’s trade was similar to Tuesday in that we remained range bound, although both the upper and lower levels were tested during the session. This leaves current analysis unchanged. I continue to give a 50% weighting to both the bullish and bearish views. Neither has proven it can take control of the market and keep it. Both thus far have shown strength “in numbers” but have not been able to sustain momentum. Chart wise that produces a sideways chop fest on the hourly chart. What else the markets have produced is two very profitable trading days. The volatility continued to produce enough movement that working out of any “bad” trades wasn’t a problem. The opportunities in both directions were numerous and consistent. So, for tomorrow it will be the same story – either the bulls or the bears need to prove their control and sustain it. The bulls need to break above 4370 and put a stronger effort in reaching 4380 to 4400 without being overtaken by the bears. The bears need to do the same thing but of course to the downside and break below 4316 with momentum and sustainability.
October 13, 2021