Alphabet Soup
I wasn’t thinking about Monday being a holiday until I looked at the first hour of trading. I hope most of you made this into a four day weekend. However it’s surprising how regular the movements often are on a narrow range day.
After a small gap, the first hour had a trading range of under five points, and because of the holiday weekend the day’s entire range was only a little over six. The market made an early pullback and then rallied with a small A-B-C Measured Move that completed a larger A-B-C pattern that began yesterday. That gave a double Fibonacci signal for the high of the day.
From the top, a Measured Move down (100%) created the first leg of a larger A-B-C. It ended with a Stochastic divergence at the same time the market tested a pivot from earlier in the morning.
A rally of 50% set up another reversal, and then it was down again in an A-B-C Measured Move to set up a bottom pivot. This was the third touch of a support level shown by the blue horizontal line, the third Measured Move of the day, and it completed a larger A-B-C that ended at a Fibonacci 62%. Lots of tradable setups but unfortunately no range to work with. Have a nice long weekend.
