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The September S&P; 500 E-Mini contract has fired NR7, 2 Day ROC Buy, and 90-10 High Continuation & Reversal signals for today's trading. The NR7 signal tells us to expect range expansion and a pickup in volatility. The 2 Day ROC Buy signal implies that Monday's principle trade direction should be to the upside. The 90-10 High Continuation & Reversal signal tells us to look for morning follow through on the strong close, but to expect a likely reversal once the initial move has topped. Cycle Indicators (chart at right) have moved into a region where short term cyclical tops often form, and the larger trend is to lower prices. Although odds seem to favor the upside, the NR7 signal is telling us to stand prepared for a large impulse move in either direction. Trade the break of Friday's 1338.50 high to 1324.50 low range with a stop and reverse on the opposite side as the entry. Price action relative to today's 1333.50 Daily Pivot level may provide clues for earlier entry. If the initial break is to the upside the 90-10 High Continuation & Reversal signal is telling us to stand prepared to exit or even reverse if we get appropriate price reversal patterns and/or Oscillator Divergence near important resistance levels. Our Normal High Range Projection level of 1344.50 or the Extended High Range Projection level of 1349.75 would be likely areas for such a reversal to take place.
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