S&P 500 The March S&P contract has fired NR4, Inside Day, and 2 Day ROC Sell signals for today. The NR4 signal is triggered when the day's range is the narrowest of the last four days. It tells us to expect price expansion and a pickup in volatility. The Inside Day signal is fired when the day's trading occurs within the range of the prior day. A subsequent breakout of an Inside Day's range typically points the way of the next trend move. The 2 Day ROC Sell signal implies downside potential. Cycle Indicators (chart above) have moved into a region where short term cyclical tops often form. The larger trend is to lower prices. Although odds seem to favor the downside, the NR4/Inside Day signal combination tells us to stand prepared for a large impulse move in either direction. Trade the break of Friday's 1129.70 high to 1118.50 low range with a stop and reverse on the opposite side as the entry. Price action relative to today's 1123.90 Daily Pivot level may provide clues for earlier entry.

ORIGINAL PATTERN TRAPPER SETUP

NEXT DAY MARKET ACTION

Nasdaq 100 The March Nasdaq 100 contract has fired 2 Day ROC Sell and 90-10 Low Continuation & Reversal signals for today's trading. The 2 Day ROC Sell signal implies that today's principle trade direction should be to the downside. The 90-10 Low Continuation & Reversal signal forecasts a test of the prior day low with a potential reversal. Both the larger and more immediate trends are to lower prices, but Cycle Indicators have entered a region where short term cyclical lows often form (chart above). Odds favor a test of yesterday's low, but stand prepared for a quick reversal should we get appropriate price reversal patterns and/or Oscillator Divergence near important support levels. Likely reversal zones include the 1503.00 level of yesterday's low or the l472.00 level of today's Normal Low Range Projection.

ORIGINAL PATTERN TRAPPER SETUP

NEXT DAY MARKET ACTION

T-Bonds The March T-Bond contract has fired NR7 and Inside Day signals for today's trading. The NR7 signal is triggered when the range of the day's trading is the narrowest of the last seven days. It tells us that we're likely to have a breakout in store either today, or over the next few days. The Inside Day signal is fired when the day's trading occurs within the range of the prior day. A subsequent breakout of an Inside Day's range typically points the way of the next trend move. The NR7/Inside Day signal combination tells us to stand ready for a large impulse move in either direction. Trade the break of yesterday's 103-20 high to 103-01 low range. If entered long, place a stop and reverse on the break of yesterday's low. If entered short, stop and reverse on the break of yesterday's high. Price action relative to today's 103-12 Daily Pivot level may provide clues for earlier entry.