Tuesday’s Session was Cycle Day 1 (CD1): The decline which began on Cycle Day 3 spilled into this cycle day, exceeding average decline (4668), pushing to lower violation levels (4650). Range was 47 handles on 1.833M contracts exchanged, twice the average volume.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Bullish Reversal from lower violation level (4650) has rallied price to the initial upside target (4695). Normal for Cycle Day 2 is for stabilization/consolidation of recent activity. Given pre-holiday trade unfolding, anything goes for this session as Friday is a half-day session. As such, estimated scenarios to consider for today’s trading.