I have to wait for DJI 5-min, 380-unit (critical support) to be broken before I can expand shorts. Unfortunately, we had this M/A crossed on the upside Monday at 10,725 and the market topped at 10,920 for a 1.8% penetration. This is an upside breakout (>1.2%). The increased volatility could have distorted the range, but I don't believe this to be the case. Nevertheless, I must now wait for a downside break at 10,680 before I can swim with the fishes. Besides, tomorrow afternoon is my target date for shorting.
Notice that 10,680 is also a clean break of the Monday/Tuesday lows.
Prices came down to an important support level the 85-hour. I expect a bounce from here through tomorrow.
I1 is up tomorrow, heading into a flat patch. 5/24 is the date when it turns down again, but when I1 goes flat it means that anything can happen. In other words when flat the I1 loses forecast direction. So, in keeping with the trading rules I can stick my neck out a bit late tomorrow afternoon, if the market obliges by levitating a bit.
Silver looks to have topped. Will go in with 2.5% on a M/A break.
Bonds are staying above their 15-day M/A and the 30-year futures are holding above critical support at 120. Prices dipped briefly under today but rallied to close higher.
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