Let’ not over think this market.
The market watch charts all have negatively stacked pivots, a doji like daily pattern, a tight range, and today was the first time the markets took out the low of the prior day since the lows. This leaves us with a nice consolidation day in the context of either bearish flag, or consolidation after a 3 day rally.
The net result is the market is set up for a directional day in either direction. I’m not going to guess which way, but rather follow the day ORSF rules.
The day starts with a bearish bias due to the negative pivot stack, but the markets closed right at their pivots so I’d let the OR and where the OR break happens relative to the pivots be the determinant of the bias to start the day.
Over R1 the pivot stack bias changes from bearish to bullish. R1 lines up with the area of the high of the last 2 days so that should be a very important level.
Here are the stocks we’ll begin the day with on our watch list:
Long Focus:
XLY
IBB
IYR
CBS
HANS
ED
SUG
KCI
VFC
QCOR
DLTR
AAPL
GMCR
MA
Short Focus:
BIDU
GOOG
MOS
XOM
