"With the intra-day signal still in OB, the momentum to more upside is in play. Look for an exit of this range for a trade exit or a short entry, whichever you prefer."
Strategy should always be made at end of trading days and reviewed before market opens so one has an idea of what needs to be done when said scenarios happen. Plan the trade, and trade the plan..
The ST has not turned down, but it could as easily turn with the price momentum the SPX had today. Volatility plays a big disadvantage to indicators, but will turn true eventually. One must ride the storm is all. Even for day traders, the extreme swings from OB to OS must be a stress inducing move. So regardless of the pattern or the Wave count, one should look at the indicator to see where it is telling us to get out or place our trades. In the case today, it is on the exit of the OB range. Today's move is also the biggest since late March. Will we get the momentum to finally make its mind up and travel in a sustained direction?
The intra-day chart is clearly showing its MT as bearish. So look for the ST to turn down tomorrow and see if the signal stays at OS. If you are short, the OS signal will be your trigger when it exits the range. Otherwise it is pushing lower.
MT: UP
ST: UP
PA: DOWN
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