May 6th Plan

Yesterday I discussed the important of the D200, and the likelihood of a little pullback before any more higher.

I also said, "the bias is up until a loss of the MD Put trigger or H48. I'm also taking note of the low volume coming into FOMC."

Well both have played out. We've lost the MD put trigger and on low volume. The hourly bias is definitely down, and we've just about filled the opening bear gap. So, lower is in play unless we fully recapture the put trigger with volume.

Plan for today. We're at the H21 ribbon resistance right now. This is resistance. I could enter puts here and exit in the 10m ribbon, leave runners for continuation. However, the squeeze is starting to fire so we could also continue up, but we're not at support so it's not an appropriate entry for calls. Only after the H21 is firmly broken can we consider calls.

Also given FOMC, we have low volume, which leads to tricky moves. I will take profit and be content.

Bias down unless H21 breaks. Puts at resistance. Quicker exits given low volume.

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Not so fast! If the hourly candle closes above the put trigger, that's a pretty meaningful bullish engulfing candle. ALSO, where we bounced so aggressively from was the bullish opening gap created at the end of last week.

I'm not saying calls right now, I'm saying, a softer downward bias. Patience will pay today. So, I will wait. I could see us just ping ponging back and forth between the gaps, waiting on tomorrows FOMC meeting.