Trading the Range

The March 17^th sell-off broke the origination point of the up move and quickly reversed back to the range between the highs of the year and the double bottom. A second sell off broke the double bottom but was unable to reach the origination point. This was a strong bull signal. We are now at the double bottom point of interest and moving in a tight range. If that point doesn’t break, than we believe the break out to the upside will occur and test the highs once again. It’s very possible that we’ll see a swing up, fail at the highs, and then reverse back to the double bottom point of interest. If that point breaks it’s likely the trend will continue to test the origination point. We’ll have to see at that point the signals for the next move. The range is very large and it’s very important to maintain your points of interest as the market makes its moves.